Washington – Tata Group-owned Air India has been ordered by the US to pay Rs 988.25 crore ($121.5 million) in refunds to passengers and Rs 11.38 crore ($1.4 million) in fines. The action of the US Department of Transportation is for the delay in refunding the ticket money to the passengers after the cancellation of the flight service. Most of those considered are complaints during covid. The US Department of Transportation is collecting Rs 5000 crore as refunds from a total of six airlines.
Air India’s policy of refunding tickets only to those seeking refunds is against US Department of Transportation regulations. Passengers are legally entitled to a refund if a flight is cancelled. But Air India was giving refunds only to applicants.
These complaints predate the takeover of national carrier Air India by Tata. According to an official investigation, Air India took more than 100 days to process 1,900 refund complaints filed with the US Department of Transportation regarding flight cancellations. Air India has not provided information on the time taken to issue refunds to passengers who have lodged complaints and requested refunds directly from the airline.
Apart from Air India, the US Department of Transportation fined Frontier, TAP Portugal, Aero Mexico, EI AI and Avianca. Under US law, airlines and ticket agents have a legal obligation to refund passengers if the airline cancels the flight or makes a significant change to the route. The Department of Transport said it was illegal for airlines to refuse refunds and instead issue vouchers to passengers.
English Summary: US Orders Tata-Led Air India to pay $121.5 Million As Passenger Refunds