Airlines under refund glare

The national watchdog that busts monopolies, MRTPC, has found the refund policies of Indian, Air Deccan, Air Sahara (now JetLite), SpiceJet, GoAir and Alliance Air “unfair and prejudicial to public interest”.
Acting on a recommendation by its investigative arm, the MRTPC had started proceedings against the airlines and asked them to file an explanation. The exercise has been put on hold as a few airlines have sought more time to reply.
The initial inquiry concluded that unjustified costs were imposed on “gullible” passengers, who are attracted by low fares, if they were to cancel tickets.
The investigative arm recommended that the airlines should refund the money after deducting cancellation charges alone. The industry does not have a uniform refund policy. Neither has the government laid down any guideline.
The MRTPC had ordered the probe after getting complaints on the cancellation policy of several airlines offering low fares.
23/05/07 The Telegraph

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Categories: General Aviation May 2007