IndiGo Refunds Rs 1,030 Crore To Passengers, Know The Reason Here

The airline operated by InterGlobe Aviation Ltd said it had completed disbursement of 99.95 per cent customer credit shells and refunds while the pending credit shells are mostly cash transactions and the company is awaiting bank transfer details from the customers.

Representative Image

The Covid-19 lockdown has proven to be a costly affair for passengers and airlines alike. One of the largest domestic airlines IndiGo has refunded around Rs1,030 crore to customers while complying with a Supreme Court order.

Why the airline refunded Rs 1,030 crore?

The top court directed airlines to refund payments made for travel during the nationwide lockdown. In September 2020, airlines were asked to immediately refund fares booked for travel until 24 May 2020. Also Read: Covid Vaccine Maker Adar Poonawalla Rents London Mansion For A Whopping Rs 50 lakh A Week. Check Details Of The Property

In a statement on Wednesday, the company informed about the completion of disbursement of 99.95 per cent customer credit shells and refunds.

The airline operated by InterGlobe Aviation Ltd said the pending credit shells are mostly cash transactions and the company is awaiting bank transfer details from the customers.

What is the apex court order?

On April 16, 2020, the Directorate General of Civil Aviation (DGCA) had issued a notification ordering airlines to immediately refund tickets booked during the first phase of the lockdown from 25 March to 14 April 2020. 

In its order, the apex court has intimated that the value of an air ticket refunded through credit shell vouchers will be increased by 0.50 per cent  per month (6 per cent per annum) till 30 June 2020 and thereafter till 31 March 2021 by 0.75 per cent per month (9 per cent per annum).

But the distressed airlines were able to issue credit shell vouchers till March-end.

IndiGo’s chief executive officer Rono Dutta said the sudden onset of covid-19 and the resulting lockdown brought its operations to a complete halt by the end of March of 2020.

The company was unable to immediately process refunds for cancelled flights make because the incoming cash flow through ticket sales got impacted during the lockdown. It created credit shells for the refunds that were due to our customers IndiGo’s chief executive officer (CEO) Rono Dutta said in the statement.

“However, with the resumption of operations and a steady increase in demand for air travel, our priority has been to refund the credit shell amounts in an expedited manner," added Dutta.