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US orders AI to refund $121m for cancelled America flights to customers; fines it $1.4m for delay
NEW DELHI: USA placed an order Indian Airlines had to pay $121.5 million in refunds and $1.4 million in penalties for excessive delays in refunding passengers for flights that were mostly canceled during Covid. In addition to AI, the US Department of Transportation (DoT) has requested five more foreign airlines – BorderTAP Portugal, Aero Mexico, EI AI and Avianca – to jointly pay $600 million in refunds and penalties.
“The US DoT… has determined that Air India routinely fails to provide timely refunds to passengers for flights to and from the United States that it has canceled or substantially changed.… As of March 2020… (we) received over 1,900 complaints (related to AI refunds). The AI’s stated policy is to offer refunds to consumers for flights that are canceled or significantly changed. However, a review of the complaints submitted to the department shows that it has in fact taken more than 100 days for the AI to process most of the refund requests it receives”, DoT order Nov 14, 2022 said.
It added that the AI admitted it had failed to “timely issue refunds” to passengers who requested refunds, and that the airline had been directed “to stop and eliminate similar violations in the future.” Maharaja’s refund cases mostly date back to its state-owned days. The Tatas took over the airline this January. Confirming the DoT fine, AI said in a statement: “We deeply regret that the customer was inconvenienced and accepted the fine. Since AI was privatized in January 2022, every effort has been made to clear all outstanding returns, with over 25,000 cases totaling $18.3 million processed. successful “.
“New systems have also been implemented to expedite the processing of new refunds, which are now turned around within a week on average. We have publicly invited anyone who feels they have a refund from Air India to contact us at https://www.airindia.in/SpecialRefundDrive.htm,” the AI statement added.
The DoT order says the AI took more than 100 days to process more than half of the 1,900 refund complaints submitted for US flights that were canceled or significantly altered. “Regardless of the AI’s stated refund policy, in practice the AI did not issue a timely refund. As a result, consumers have suffered significant losses due to extreme delays in receiving their refunds.”
The airline has told the DoT that it has a “free refund on request” policy. “AI asserts that it has waived applicable change, cancellation, and no-show penalties for over $98 million worth of ticket refunds, resulting in passengers receiving full refunds without delay. others do not enjoy them. AI claims that it has faced extraordinary difficulties in the early stages of Covid-19, including multiple closures of offices in India, border closures and travel bans, which has significantly hinder the ability to process refunds,” the order said.
“AI argues that because it does not mislead passengers about their rights, and because its refund policy on demand is more liberal than that required by regulation, its penalties should be reduced. However, AI agreed to this settlement in the interest of avoiding litigation,” it added.
“The US DoT… has determined that Air India routinely fails to provide timely refunds to passengers for flights to and from the United States that it has canceled or substantially changed.… As of March 2020… (we) received over 1,900 complaints (related to AI refunds). The AI’s stated policy is to offer refunds to consumers for flights that are canceled or significantly changed. However, a review of the complaints submitted to the department shows that it has in fact taken more than 100 days for the AI to process most of the refund requests it receives”, DoT order Nov 14, 2022 said.
It added that the AI admitted it had failed to “timely issue refunds” to passengers who requested refunds, and that the airline had been directed “to stop and eliminate similar violations in the future.” Maharaja’s refund cases mostly date back to its state-owned days. The Tatas took over the airline this January. Confirming the DoT fine, AI said in a statement: “We deeply regret that the customer was inconvenienced and accepted the fine. Since AI was privatized in January 2022, every effort has been made to clear all outstanding returns, with over 25,000 cases totaling $18.3 million processed. successful “.
“New systems have also been implemented to expedite the processing of new refunds, which are now turned around within a week on average. We have publicly invited anyone who feels they have a refund from Air India to contact us at https://www.airindia.in/SpecialRefundDrive.htm,” the AI statement added.
The DoT order says the AI took more than 100 days to process more than half of the 1,900 refund complaints submitted for US flights that were canceled or significantly altered. “Regardless of the AI’s stated refund policy, in practice the AI did not issue a timely refund. As a result, consumers have suffered significant losses due to extreme delays in receiving their refunds.”
The airline has told the DoT that it has a “free refund on request” policy. “AI asserts that it has waived applicable change, cancellation, and no-show penalties for over $98 million worth of ticket refunds, resulting in passengers receiving full refunds without delay. others do not enjoy them. AI claims that it has faced extraordinary difficulties in the early stages of Covid-19, including multiple closures of offices in India, border closures and travel bans, which has significantly hinder the ability to process refunds,” the order said.
“AI argues that because it does not mislead passengers about their rights, and because its refund policy on demand is more liberal than that required by regulation, its penalties should be reduced. However, AI agreed to this settlement in the interest of avoiding litigation,” it added.
