Jet Airways 2.0 to refund Jet Airways tickets up to a maximum of INR 15,000 per claim

One of the big questions that emerged from the closure of Jet Airways in 2019 was the issue of refunds to customers who were left with unused tickets at that point in time. Unfortunately, since the tickets were issued by Jet Airways, they were the ones who had to refund them, and since they had no money, they went into the whole bankruptcy process.

In late May 2021, after about two years, Jet Airways finally started to line their ducks in a row, with a potential new owner who is approved by the Banks who are owed money by Jet Airways, and also approved by the National Corporate Law Tribunal. The decision on passing on the reins of Jet Airways to the new owner was approved on June 22, 2021. The written order, which runs into 59 pages has been now published. While I will be going over the full order and analysing it shortly, here is the interesting part for the customers.

Jet Airways customers to be refunded

As per the order, 5081 customers’ refund claims were admitted by the Interim Resolution Professional of Jet Airways. You can check out the list here to see if your claim was admitted. Now, the court has ordered that a refund of up to INR 15,000 be provided to all these claims when the new Jet Airways comes into being. These refunds can be made in cash, or as vouchers for the new Jet Airways.

Here are the details of the order referring to customer refunds, produced verbatim,

The SRA submits that the Operational Creditors classified as “Ticket Refund” in the list of Creditors (total 5081 in number) shall have the option to either choose to get cash refund or seek credit for future tickets, but not both. No claims relating to lost Jet Privilege Miles will be entertained. It is clarified that the liquidation value payable to claimants of ticket refunds will be paid in cash.

Cash refund

  • For claims up to INR 15,000, refund will be processed as per actuals.
  • For claims over ₹. 15,000, refund will be processed to a maximum of INR 15,000.

Or

Credit for future tickets

  • For claims up to INR 15,000, credit for future tickets will be provided as per actual admitted claim amounts.
  • For claims above INR 15,000, credit for future tickets will be provided subject to a maximum of INR 15,000.
  • Credit for future tickets will be issued in the form of redeemable vouchers in the multiples of INR 1,000/- (equivalent to INR 1,000 worth of credit for future tickets).
  • Vouchers will be transferable in nature (prior to issuance of any ticket). No tickets will be transferable in nature.
  • Vouchers can be redeemed against more than 1 (one) ticket.
  • Booking of tickets against redemption of such vouchers must be completed within 30 Days of the Corporate Debtor recommencing (Jet 2.0) its domestic operations.
  • Tickets can be availed during April – June Quarter and August – October Quarter on any sector where Jet 2.0 flies.

Unfortunately, this means that most people who had tickets outstanding won’t be made their amounts whole by the new airline. This is in line with the banks who are owed a huge amount of money, and are also going to get a very small amount eventually from the resumption of operations of the airline. And in many cases, scrolling through the list of people, many are owed money in Lakhs of rupees, and this would not even start to scratch the surface for them.

As you would notice, there are many an if and but attached with the credit for future tickets, so most probably, when the time comes most would go for the cash refund of INR 15,000.

Bottomline

There will be a refund offered to customers of Jet Airways who managed to file a claim with the airline and had their claims accepted, to the extent of INR 15,000 rupees. The refund will be paid in cash, or customers will be offered the option to collect vouchers usable with the new Jet Airways when it comes into operation. The timeline to make these refunds is not set at the moment.

What do you think of the refund options to be provided to the customers of Jet Airways?


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Comments

  1. we are waiting from more than two years jet airways should return what i paid otherwise give ticket instead of amount.

  2. Very Nice!! Finally every one forgot about Naresh Goal and Jet 1.0
    I was in impression that Resolution plan was to help Creditors and ticket claims.. but nevertheless the resolution plan is for Investors and help out corporates to back their Airways business without paying the Debits!!!

    No proper Investigation on Jet Airways why the tickets were sold when they are about to ground the Airways at least next 3 months..

    Finally the common man is punished!!!

  3. I’m JOGINDER PAL and I purchased two tickets from Agent of jet airways JALLANDHAR. I applied for the refund through the Agent. No refunds so for. Amount of my ticket is Rs 220000/

  4. I have purchased a ticket Rs.56000.00 directly with Jet website, But still not received any refund kindly advice me how i can get it.

  5. I’m Ravinder Singh Kang and I purchased two tickets from Agent of jet airways New Delhi. I applied for the refund through the Agent. No refunds so for. Amount of my ticket is Rs 170000/

  6. i purchased a ticket of Rs 81000 through agent. but did not received any money… can anyone tell me the procedure please?

  7. I had purchased a ticket 27862 rupees. through Paytm. But today i get msg by Paytm jet refund procesed 8% total amount 2214 rupees refund by jet airways, and Paytm now detection cashback 1200 rupees and 699 rupees convenience charges so total amount payment will refund only 315 rupees, i am happy today because more then 2years waiting for 315 rupees
    thanks Paytm & jet airways

    • Even I have got the same message from Paytm which is not acceptable. Paytm is not giving us our money

      • I got the same reply today from Paytm. I had booked 4 international tickets worth 1.78 lakhs. They are saying they received 8% refund and after deducting cashbacks , the final refund amount is 0.

        Such a shame !! Zero customer empathy.

    • @Sam, at this point in time, they continue to function as Intermiles but I believe they want to try to buy it back from Etihad. Let’s see.

  8. I had purchased two return tickets to for Rs. 140000/- through agent. Even if I get refund of Rs.30000/- as specified in the above article and if my claim is accepted, it is very less amount. What action can I take? Please suggest.

    • @Ratnesh, nothing. This is a bankruptcy proceeding. So everyone will get pennies on the dollar, no negotiations. Also, this amount will be a while away, subject to your claim having been filed and accepted. was that the case?

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