The Supreme Court on Wednesday ordered airlines to pay 0.5 per cent interest per month on delayed refunds of tickets, which were cancelled due to restrictions imposed, to flyers.
The court said the credit shell would be valid till March 31, 2021, and if the passenger didn’t use the amount after that, airlines had to refund the amount with additional interest.
The amount in the credit shell can be used on any route and is transferable. “In all cases where credit shell is issued, there shall be an incentive to compensate the passenger from the date of cancellation up to June 30, 2020, in which event the credit shell shall be enhanced by 0.5 per cent of the amount of fare collected for every month or part thereof between the date of cancellation and June 30, 2020.
