Internet association opposes proposed force majeure for airline services
The Internet and Mobile Association of India (IAMAI), on behalf of Online Travel Aggregators (OTAs) and other travel tech services, has opposed the proposal for ‘Force Majeure’ for airline services.
This has come in response to recent media reports which have suggested ‘force majeure’ provisions for the airlines sector in terms of its payments and dues to others. A ‘force majeure’ clause by law is an unforeseen circumstance that prevents someone from fulfilling a contract.
According to IAMAI, if airlines are allowed to not make refunds on grounds of force majeure, it will create significant downstream disruptions in the travel and tourism sector. Such a move may allow airlines to come out stronger, but at the cost of destroying the downstream ecosystem, affecting the livelihoods of millions.
“The travel and tourism sector is going through one of its worst phases, with present and future booking activities closed, thereby, stopping all incoming revenues; coupled with cancellations and demands for refunds, which creates major cash flow challenges for everyone involved in the business.
