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.
- 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.
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.
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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