In Brief
During the COVID-19 lockdown, airlines cancelled flights and either denied refunds or offered credit vouchers instead of cash. Multiple public interest petitions challenged this as violating Civil Aviation Requirements and consumer rights. The Supreme Court, after consulting the Government, airlines, and agents, adopted formulations balancing passenger and airline interests. For tickets booked during lockdown for travel within lockdown, immediate full refunds apply. For others, airlines must refund within 15 days or issue transferable credit shells with interest-like enhancement (0.5-0.75% monthly) redeemable by 31st March 2021. The Court emphasized that strict enforcement rules would worsen airline distress and delay all refunds, making practical accommodation justified during extraordinary circumstances."
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