IndiGo pays 1030 CR as reimbursement for flight cancellations during lockdown

IndiGo announced that it has reimbursed 99.5% of the total amount it owed to its customers due to the complete shutdown of air services in 2020. Passengers who could not fly due to the year-round pandemic-induced lockdown last were to be reimbursed in full by order of the Supreme Court.

IndiGo, the country’s largest airline by market share, said that since resuming full operations in May 2020, it was promptly reimbursing monies owed to customers whose flights were canceled during the lockdown.

The airline spokesperson said: “The airline has already dealt with almost 1,030 crore in refunds, which represents approximately 99.95% of the total amount owed to its customers. Pending credit shells are mostly cash transactions in which IndiGo waits for bank transfer details from customers. “

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Lawyer Shirish Deshpande, chairman of Mumbai Grahak Panchayat, a Mumbai-based consumer organization, said the situation appears to be improving as the number of complaints against airlines has declined.

Ronojoy Dutta, CEO of IndiGo, said: “The sudden onset of Covid-19 and the resulting lockdown brought our operations to a complete halt by the end of March 2020. As our cash flow comes in via ticket sales was affected, we were not able to immediately process refunds for canceled flights and had to create credit shells for refunds owed to our customers. However, with the resumption of operations and a steadily increasing demand for air travel, our priority has been to repay the shell loan amounts on an expedited basis. We are happy to report that we have disbursed 99.95% of the credit shell payments and will make the remaining payments as soon as we receive the required details from customers. “

“There are exceptionally few complaints related to refunds. We have not received any complaints in the past eight days. However, you have to check whether the airlines are paying the amount of interest that the Supreme Court asked them, ”Deshpande said.