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Are Airlines Allowed to Withhold Funds After Cancelling Your Flight? IndiGo Passenger’s Experience Highlights Refund Policies
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Are Airlines Allowed to Withhold Funds After Cancelling Your Flight? IndiGo Passenger’s Experience Highlights Refund Policies

Aviation Ministry Limits Airfares to Shield Passengers from Price Increases Following IndiGo Service Interruptions Aviation Ministry Limits Airfares to Shield Passengers from Price Increases Following IndiGo Service Interruptions
An experience shared by an IndiGo airline passenger regarding a cancelled international flight has ignited a discussion surrounding airline refund policies. It has also prompted inquiries about the rights of travellers when an airline cancels a flight.

The situation was highlighted by Kanika Mohan Saxena, an executive from Mumbai, who claimed that about ₹40,000 was deducted from her refund even though the airline cancelled her itinerary on two occasions. Saxena took to LinkedIn to voice her concerns over airline refund practices and the accountability of booking aggregators.

Saxena stated that she had purchased round-trip tickets from Mumbai to Bali for a journey in July, costing around ₹1.03 lakh. Later, she was notified that the initial flight was cancelled and replaced with a different itinerary that included an 18-hour layover, which she deemed “not feasible”.
Initially, Saxena was informed that there were no suitable alternative flights. However, after discovering other options through her travel agent, she was rebooked on a different route via Singapore. Unfortunately, that itinerary was also reportedly cancelled a few days later.

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Following this, Saxena communicated that she was assured of a full refund since the changes were initiated by the airline. Yet, she received a notification stating that only ₹67,334 would be refunded. “Today, I received a message that only ₹67,500 would be refunded against a booking value of approximately ₹1,00,000, with the balance deducted as charges and fees,” she indicated.

IndiGo replied to her post, confirming that a full refund had been initiated for her booking and suggesting that she liaise with the booking platform to receive the amount.

Meanwhile, MakeMyTrip stated it was verifying the situation with the airline and would provide updates following its verification process. “We are validating all the details with the airline. Kindly allow us 2-3 days and we will get back to you with a suitable resolution,” it noted.

Understanding airline refund policies

This incident has shed light on a frequent area of confusion for travellers: who is liable for refunds when flights are cancelled. Typically, when an airline cancels a flight, passengers have the right to either an alternative booking or a full refund, depending on specific circumstances.

According to the IndiGo website, “If your flight is cancelled or rescheduled from our end, you can leverage Plan B to change the time and/or date of your flight, or cancel and process a refund, at no extra cost.”

In situations where passengers choose to voluntarily cancel their bookings, airlines generally impose cancellation fees that differ based on the fare type and the remaining time before departure.

Furthermore, for tickets booked via travel agencies, airlines typically refund the agency’s account upon booking cancellation. “Passengers will need to get in touch with the respective agency directly to claim their refund,” as per IndiGo.

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