Economy

Air India told to pay up $121.5 million as refunds to flyers for cancelled flights in USA

The USA has ordered Air India to pay as much as $121.5 million as refunds to passengers due to the cancellation or change in flights, mostly during the Covid-19 pandemic. The airline has also been asked to cough up another $1.4 million as penalties on the delays in providing refunds.

The development comes as part of the US Department of Transportation’s crackdown on airlines that refuse to give customers refunds for cancelled flights.

Secretary of Transportation Pete Buttigieg on Monday announced that the department is assessing fines totalling $7.5 million against six airlines, and the DOT is ordering those airlines to pay $600 million in refunds to hundreds of thousands of customers.

The other airlines subject to Monday’s enforcement action are:

  • TAP Air Portugal – $126.5 million in required refunds paid and a $1.1 million penalty
  • Aeromexico – $13.6 million in required refunds paid and a $900,000 penalty
  • El Al – $61.9 million in required refunds paid and a $900,000 penalty
  • Avianca – $76.8 million in required refunds paid and a $750,000 penalty

“When a flight gets cancelled, passengers seeking refunds should be paid back promptly,” Buttigieg said. “Whenever that doesn’t happen, we will act to hold airlines accountable on behalf of American travelers and get passengers their money back.”

“A flight cancellation is frustrating enough and you shouldn’t also have to haggle or wait months to get your refund,” he said.

Airlines are required to pay customers refunds when a flight is cancelled for any reason, but often, in an effort to keep the cash, many airlines offer vouchers or credit for future travel instead of a refund.

Airlines’ refusal to give passengers their money back has become a huge source of consumer complaints, especially during the early days of the pandemic when almost no one was flying.

IN Bureau

Recent Posts

Balochistan: Medical students protest campus closure, security crackdown

Students at the Bolan Medical College (BMC) in Balochistan's Quetta entered the 27th day of…

38 minutes ago

Climate change, health risks escalate amid surge in PoGB deforestation

The intensifying cutting of trees for firewood in Pakistan-occupied Gilgit-Baltistan (PoGB) is not only worsening…

2 hours ago

India’s retired judges, bureaucrats call for “immediate end” to attacks on minorities in open letter to Bangladesh

A group of retired judges, bureaucrats, Army officials and other civil society members have penned…

2 hours ago

Israel, Slovakia sign historic USD 582 million deal to boost Air Defense capabilities

Israel and Slovakia signed a 2 billion shekel (USD 582 million) agreement on Monday to…

3 hours ago

Pakistan: Protests continue in Kurram over road closures amid crisis

Protests against the prolonged road closures in Kurram persisted on Sunday, as residents held a…

4 hours ago

Sikyong Penpa Tsering successfully concludes key engagements in US, strengthening Tibetan cause

Sikyong Penpa Tsering, the political leader of the Central Tibetan Administration (CTA), has successfully concluded…

4 hours ago