Monday, July 27, 2020

Jet Airways Refunds: IATA says only 8% of refunds post grounding can be paid

Even as the Jet Airways insolvency proceedings enter the final phase, the global body of airlines, the International Air Transport Association (IATA), has informed IATA-approved travel agents and agencies that they can be given only 8 per cent of the total refunds approved by the airline resolution professional.
“Following previous communications on the Jet Airways bankruptcy, all the refund applications filed in BSPLink for Jet Airways (9W-589) tickets by travel agents worldwide as part of the post-suspension refund process have been evaluated by the airline’s representatives,” said the communication from IATA,
which represents 290 global airlines. BSPLink is an internet-based IATA system that facilitates settlement of financial transactions between travel agents and airlines and 9W-589 is the code for Jet Airways in this Billing and Settlement Plan (BSP) process.
“Unfortunately, the balance of the security deposit held by IATA [after settling 100 per cent of all refunds up to the date of suspension] was not sufficient to cover all the remaining refunds that have been approved by Jet Airways in the post-suspension refund process. Therefore, IATA will have to prorate the total
refund against the net remaining balance withheld, which means that your agency will receive approximately 8 per cent of the total refunds approved by the airline in this process,” the IATA letter said.
Albert Tjoeng, IATA’s assistant director, Corporate Communications-Asia Pacific, said: “All of the refunds executed by agents and authorised by the airline prior to the suspension of Jet Airways on 18 April 2019 have been processed and settled in full to agents during the course of the airline’s participation in the BSP, as per standard practice. This settled amount was drawn down from the Jet Airways security deposit held by IATA.” He said: “However, for the refunds that were submitted and authorised by the airline after 18 April 2019, the balance of the security deposit was insufficient to
cover the total approved refund amount. As a result, travel agents participating in the IATA BSP will receive a pro-rated amount of approximately 8 per cent of the approved refunds they had submitted.
27/07/20 Satish Nandgaonkar/Mumbai Mirror
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