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The US has ordered Tata-group owned Air India to pay a whopping USD 121.5 million as refunds and USD 1.4 million as penalties for extreme delays in providing refunds to passengers due to the cancellation or change in flights, mostly during the pandemic, officials said.
As per PTI , report, Air India is among the six airlines that have agreed to cough up a total of over USD 600 million as refunds, the US Department of Transportation said on Monday.
Air India’s policy of “refund on request” is contrary to the Department of Transportation policy, which mandates air carriers to legally refund tickets in the case of cancellation or change in flight, officials said.
“Irrespective of Air India’s stated refund policy, in practice Air India did not provide timely refunds.
“As a result, consumers experienced significant harm from the extreme delay in receiving their refunds,” the US Department of Transportation said.
In addition to Air India, the other airlines that were slapped fines include Frontier, TAP Portugal, Aero Mexico, EI AI, and Avianca.
