Failure To Refund Air Ticket Price Booked During Covid-19, Hyderabad District Commission Directs Etihad To Process Refund, Pay Compensation

Brief Facts:

Mr. Mayur Mullaguri and Mrs. Chaitanya Chand Chandra (“Complainants”), a married couple accustomed to frequent international travel during vacations, planned a trip to the USA using the services of Etihad Airways (“Etihad”). The airline confirmed these arrangements via email. However, the emergence of the COVID-19 pandemic led to widespread lockdowns across various countries, including India, from March 25, 2020, to May 31, 2020. Consequently, the Complainants were compelled to cancel their travel plans in compliance with government directives.

Despite the lockdown and the ensuing travel restrictions, Etihad failed to refund the ticket fare, contravening government guidelines. The Complainants made repeated attempts to seek reimbursement or rescheduling of their tickets but didn't receive any help from Etihad. Etihad offered an option to rebook the flights before September 30, 2020, for travel by April 30, 2021, with waived change penalties and applicable fare differences. However, due to continued restrictions on international travel to the US until late November 2021, and Etihad's delayed resumption of flights to the US until early 2022, the Complainants found it impossible to accept the offer provided by Etihad.

Upon learning of the reopening of US borders for international travel in November 2021 through a local newspaper, the Complainants attempted to contact Etihad's customer care multiple times but didn't receive any response. The Complainants' PNR (Passenger Name Record) remained blocked and inactive until January 3, 2022, preventing them from lodging further complaints. The Complainants made several communications with Etihad but didn't receive any satisfactory response from it. Feeling aggrieved, the Complainants approached the District Consumer Disputes Redressal Commission-III, Hyderabad, Telangana (“District Commission”) and filed a consumer complaint against Etihad. Etihad didn't appear before the District Commission for proceedings.

Observations by the Commission:

The District Commission noted that the Complainants made several communications via Twitter and emails requesting a refund due to ticket cancellations, and Etihad failed to address the issue satisfactorily. Instead, Etihad repeatedly directed the Complainants to contact their call centre or stated they would check with them, without providing a resolution or refunding the amount.

The District Commission referred to the decision of the Supreme Court in Pravasi Legal Cell & Ors. vs. Union of India & Ors., where the Supreme Court issued directives regarding refunds for cancelled flights during the Covid-19 lockdown period. The SC held that that airlines should make all endeavours to refund the collected amount within 15 days, or provide a credit shell equal to the fare collected if unable to do so due to financial distress.

Therefore, the District Commission held that despite clear directives from the Director General of Civil Aviation and orders from the Supreme Court, Etihad failed to refund the flight charges to the Complainants. Moreover, Etihad closed the PNR without resolving the issue. The District Commission held Etihad liable for deficiency in services and unfair trade practices.

It directed Etihad to refund the total collected charges of Rs. 2,76,709/- along with interest at 12% per annum along with compensation of Rs. 50,000/- for mental agony and suffering suffered by the Complainants. Etihad was also directed to pay Rs. 5,000/- for the litigation costs incurred by the Complainants.

Case Title: Mr. Mayur Mullaguri and Anr. vs M/s Etihad Airways and Anr.

Case Number: C.C. No.125 of 2023

Advocate for the Complainant: M/s. Swathi Menon and P Raghu Shanker Varma

Advocate for the Respondent: None (Ex-parte)