Airlines contest DGCA directive on ticket refund

New Delhi: Airlines' financial troubles caused by high oil prices seem to have become the industry's best defence for not giving passengers their due.
In their latest move to oppose much belated passenger-friendly moves of the government, airlines have now decided to contest a month-old rule that would have made refunds of tickets, cancelled well in time, easier.
Many low cost airlines don't give refunds at all and put the money — after deducting a cancellation charge — in the passenger's name for a year and ask him or her to use that money by flying within that period. Or they, including full service ones, would not give refunds on time.
To end this problem, the Directorate General of Civil Aviation (DGCA) issued a new civil aviation requirement (CAR) that mandated airlines will have to give refund within a week and also not bound passengers with conditions of future travel instead of refund.
"We have opposed this move as it will financially cripple us. The matter is with the Federation of Indian Airlines (FIA), an umbrella organization of Indian carriers, that is pursuing the matter with the aviation ministry. We don't hold back anyone's money and some airlines just ask them to travel within a certain timeframe by deducting some amount. This also acts as a disincentive for late no-shows and unoccupied seats. The new rule is not being followed uniformly by all," said an airline CEO.
The new rule also mandated that airlines refund the entire taxes and surcharge component collected from passengers and just use the basic fare for deducting cancellation charge.
20/08/08 Saurabh Sinha/Times of India

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Categories: Indian Aviation- In General Aug 2008