Air India has around Rs 250 crore of COVID-19 linked travel refunds to passengers pending. The national carrier has said that it is expediting the process. It added that the process of refunds had already begun in the beginning of July, despite its revenues being severely hit due to the pandemic.
“Air India is opening automated refunds in India and abroad. We have cleared about Rs 130 crore of refunds in the previous month and are planning to expedite the process,” the carrier said, as mentioned in a report in The Economic Times.
This development comes as the government looks to privatise the national carrier. Airlines such as IndiGo have already cleared the refund process. IndiGo had stated in March that it has processed 99.5 per cent of COVID-19 refunds.
However, as the daily stated, the refund process has been delayed for Air India as the cash-strapped carrier aims to manage cash flows.
Meanwhile, travel operators and online travel platforms have been receiving refunds from other airlines in tranches to be passed on to passengers.
As COVID-19 wreaked havoc in the country and flights were cancelled amid a travel ban, the Supreme Court asked airlines to give full refunds to passengers who had to cancel their air tickets for both domestic and international flights between March 25 and May 24.
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