In absence on cash flow, airlines are not fully refunding the tickets that have been cancelled. Airlines are only offering waiver of date or destination change fee charges to its passengers.
Though none of the airlines commented on their inability to pay full refund to passengers, insiders claim that online travel agents are struggling to get a clear picture from the airlines on the issue. Moreover, the fare rules and regulations do restrict full refund.
Though some airlines have offered complete refund, due to large number of cancellations, airlines are finding it difficult to refund full amount to passengers.
Last week, Directorate General of Civil Aviation (DGCA) asked international airlines to consider waiving cancellation fees to provide relief to passengers whose travel plans are disrupted due to the coronavirus outbreak.
Deputy Director-General Sunil Kumar, in an email communication to all airlines, said, "Flights are being curtailed, cancelled and disrupted almost on a daily basis. Resultantly, passengers are also facing the brunt. In the current scenario, it would be appropriate if airlines support their passengers in this tough time by waiving off cancellation/reschedule charges or by providing any other incentive. In light of hardship faced by passengers, airlines may like to consider and take an appropriate call, accordingly."
National carrier Air India has announced rescheduling of tickets without any charges during a certain period of time in the wake of coronavirus outbreak. As per a tweet by the Air India, one free change of travel date would be permitted for new bookings made till March 31. "In view of coronavirus situation and travel advisory issued, one free change permitted for pax to postpone any international or domestic bookings on AI network to all existing bookings with travel date till 30th April 20," the national carrier said in the tweet stating the condition that the tickets must be re-issued on or before May 31.
But it made it clear that in case of re-routing, the applicable difference of fare would be charged. Air India Express, which flies to 13 international destinations with most of them in the Gulf, said free date change would be available to fresh bookings made between March 12-31.
"In view of the uncertain travel situation due to COVID-19, free date change will be permitted up to three days prior to the flight departure, for all new bookings effected between March 12 to March 31, for travel up to April 30," Air India Express said in a statement. Cancellation charges would be levied by both the airlines if a customer decides to cancel the ticket.
When contacted, a civil aviation ministry official said that the government can not take harsh steps against the airlines as sector is facing a huge financial crisis.
However, some online travel agents are offering full refund on international bookings, irrespective of airlines. But on domestic front, travel services are offering similar refund.
As international operations of almost come to halt, domestic load has also come down to 20 per cent in passenger traffic.
In absence of enough demand, airlines will have no other option than to ground its aircraft.
An industry insider maintains that in the coming days, nearly 40 per cent of aircraft will be grounded which will eventually lead to job losses.
