Budget carrier SpiceJet has sought the aviation ministry's nod to bring this global practice to India by offering "restricted non-changeable, non-refundable" fares.
Budget carrier SpiceJet has sought the aviation ministry's nod to bring this global practice to India by offering "restricted non-changeable, non-refundable" fares. These would be at least half of spot or last-minute fares and these low fares will be not just for advance purchase but "saleable at any time".
India has made it mandatory for airlines to refund at least the taxes and surcharges to passengers when they cancel a ticket. Recently, the directorate general of civil aviation (DGCA) made AirAsia India Pvt Ltd (AAIPL) do the same when this low-cost carrier (LCC) wanted to have non-refundable tickets.
SpiceJet COO Sanjiv Kapoor recently wrote to the aviation ministry, saying that demand for air travel has slackened in India, which has led to lower aircraft occupancies. "There are occasions when we fly with a lot of empty seats and customers complain why last-minute fares are so high... we are unable to discount our distressed (read unused) inventory close to the date of travel as current regulations do not allow us to offer restricted non-changeable, non-refundable fares," Kapoor's letter says.He adds that airlines abroad use discounted "but highly restrictive" fares to sell excess capacity and such a move in India will help "minimize wastage of seats", which means enabling planes to fly with less vacant seats. "Airlines would benefit from this as well as flyers, who would be able to get much better fares even at the last minute, if they are willing to accept the restrictions that come with it.... it is in no one's interest to fly aircraft with empty seats," writes Kapoor, while seeking de-regulation of the Indian aviation market.
While the ministry is yet to respond to SpiceJet, which is using all possible means to raise funds, DGCA rules are clearly against the no-refund policy that the airline is batting for. The regulator's civil aviation requirement (CAR) on this issue says: "Refund of tickets by airlines has become a major source of grievance among passengers (the complaints are of three types): Delay on refund of unused tickets; amount refunded and policy of not refunding but adjusting against tickets for future travel."
The CAR says that airlines have to refund money charged under heads like passenger security fees, congestion charge and fuel surcharge. It also asks airlines to offer money and not just say that the same can be adjusted against future travel. Sources say the refund rules could be made more stringent. "
The consumer needs protection. "Passengers are still fighting to get their refunds from some airlines that have folded up in the past three years," said a source.
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