Hindustan Times (Patiala)

US asks Air India to pay $121.5 million in passenger refunds

- Anu Sharma anu.sharma@livemint.com

NEW DELHI: The Tata groupowned Air India has been fined $1.4 million as a civil penalty over delay in refunds amounting to $121.5 million over late or cancelled flights, under an order by the US department of transporta­tion.

Under US law, airlines and ticket agents have a legal obligation to refund consumers if the airline cancels or significan­tly changes a flight to, from and within the US, and the passenger does not wish to accept the alternativ­e offered.

According to US rules, it is unlawful for an airline to decline refunds and instead provide vouchers to consumers.

The US department of transporta­tion received a large number of complaints from air travellers about airlines’ failures to provide timely refunds after cancellati­ons or significan­t changes in flights.

The US department has fined six airlines over delayed refunds, in what it termed as a “historic” enforcemen­t action. The six airlines have collective­ly paid more than half a billion dollars to people who were owed a refund due to a cancelled or significan­tly changed flight, the US department said.

According to the consent order issued on 14 November, the Office of Aviation Consumer Protection of the US department of transporta­tion determined that Air India routinely failed to provide timely refunds to passengers for flights to and from the US. Since March 2020, the department has received more than 1,900 complaints alleging that Air India failed to provide timely refunds.

While Air India’s stated policy has been to provide refunds to consumers for flights cancelled or changed, a review by the US department shows that, in practice, the airline took more than 100 days to process most of the refund requests.

 ?? AP ?? Air India has also been fined $1.4 million as a civil penalty over delay in refunds.
AP Air India has also been fined $1.4 million as a civil penalty over delay in refunds.

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