Failure to Process Refund After Flight Cancellation Amounts to Deficiency in Service: Kerala Consumer Forum Fines AirAsia
Pranav B Prem
The Consumer Disputes Redressal Commission, Thrissur, comprising President C.T. Sabu and Members Sreeja S. and Ram Mohan R., has held Air Asia (India) Limited guilty of deficiency in service for failing to refund a passenger’s ticket fare after cancellation of a flight for operational reasons. The Commission directed the airline to pay ₹10,000 as compensation for mental agony, ₹2,500 as litigation costs, and to refund the ticket fare of ₹2,983 with interest.
The complaint was filed by Yadavu P.B., who had booked an AirAsia flight from Bangalore to Cochin scheduled for 15 June 2021 by paying an amount of ₹2,983. The booking was confirmed, but on the scheduled date of travel, the complainant received a message informing him that the flight had been cancelled due to operational reasons. According to the complainant, once the flight was cancelled by the airline, it was its duty to refund the ticket fare without delay.
The complainant stated that despite the cancellation, no automatic refund was processed by the airline. He sent several WhatsApp messages and emails on different dates requesting refund of the ticket amount. Though the airline acknowledged one of his emails and assured that the matter would be looked into, no refund was issued and no further communication followed. The complainant subsequently issued a legal notice through his lawyer on 19 September 2022, but even thereafter, the airline failed to process the refund. Alleging deficiency in service and negligence causing financial loss and mental agony, the complainant approached the Consumer Commission seeking refund, compensation, and costs.
Despite service of notice, Air Asia (India) Limited did not appear before the Commission and did not file any version, and was accordingly proceeded against ex parte. The Commission examined the documentary evidence produced by the complainant, including the e-ticket, cancellation message, emails, and legal notice, and found that the flight had been cancelled by the airline for its own operational reasons.
The Commission observed that it is settled law that when a flight is cancelled by the airline, the passenger is entitled to an immediate refund of the entire ticket cost unless the passenger voluntarily opts for an alternate arrangement. It noted that the complainant made several attempts to obtain the refund through the method prescribed by the airline, but the system repeatedly failed, and the airline remained silent despite reminders and notice. The Commission held that such conduct clearly established gross negligence.
The Commission further held that failure to refund the ticket amount even after cancellation of the flight constitutes deficiency in service under Section 2(11) of the Consumer Protection Act, 2019. It observed that the complainant suffered harassment and inconvenience due to the sudden cancellation of the flight and the repeated failed attempts to secure a refund, which ultimately compelled him to initiate legal proceedings for a small sum. Emphasising that airlines are expected to maintain customer-friendly refund mechanisms, particularly where cancellation is attributable to them, the Commission concluded that a moderate compensation was warranted.
Accordingly, the Commission allowed the complaint and directed AirAsia to refund the ticket fare of ₹2,983 with interest at 9% per annum from 15 June 2021 until realisation, to pay ₹10,000 as compensation for mental agony and inconvenience, and ₹2,500 towards litigation costs. The Commission further directed that the amounts be paid within 45 days from the date of receipt of the order, failing which the entire amount would carry interest at 12% per annum.
Cause Title: Yadavu P B v Air Asia (India) Ltd.
Case No: CC 162/ 24
Coram: President C.T. Sabu, Members Sreeja S, Ram Mohan R
