Passengers’ money given as interest-free loan to airlines, says consumer rights body

MUMBAI: An affidavit filed by civil aviation ministry before Supreme Court on airline refunds was ambiguous on financial incentives for passengers whose money was with airlines, said Mumbai Grahak Panchayat (MGP), a consumer rights body.
The matter pertains to air fare refunds for flights cancelled due to Covid lockdown this summer. Airlines moved the amount into a “credit shell” which the passengers could use to buy fresh tickets, but within a stipulated time. If the credit shell isn’t used within the deadline, the passenger would lose the money.
In April, an NGO filed a petition in the Supreme Court stating that airlines should refund the full fare to the passengers who did not intend to use the credit shell within the stipulated time limit. The SC directed the ministry of civil aviation to reach a solution after consulting all stakeholders, and file an affidavit detailing the solution. The said affidavit, filed recently, has met with objections from consumer rights body.