Mumbai: Jet Airways (India) Ltd has informed travel agents that it will validate claims for flight ticket refunds within 45 days, a move that is expected to bring relief to customers who have been seeking refunds after the carrier halted operations last week.
In a communication to travel agents on Tuesday, Jet Airways said a web interface has been provided to travel agencies to submit refund applications, adding that claims can be submitted till 20 May.
“IATA (International Air Transport Association) will settle the monies post closure of Jet’s (Jet Airways) refund claim review period against the deposit held by IATA," it said. IATA can also raise a demand from Jet Airways in case of a shortfall in refund claims and deposits held by IATA.
A copy of the mail sent by Jet Airways to its travel agents has been reviewed by Mint.
Refunds for tickets bought through credit cards will be validated by Jet Airways and credit card companies each Monday, it said.
Jet Airways was an IATA member and used its billing and settlement process gateway (BSP), for tickets booked through agents, both online and offline. Agents make a single payment to the BSP, covering sales on all IATA airlines. BSP, in turn, makes consolidated payments to each airline.
However, after Jet Airways suspended flights on 17 April, IATA too followed suit by suspending the airline’s membership to its clearing house system.
A Mumbai-based travel agent said all Jet Airways refund applications submitted before 18 April have been cleared by IATA and the payouts have been initiated.
“We have been informed by IATA that the refund applications submitted after 18 April will take some more time to be cleared as per IATA guidelines. We don’t know how long yet," said the travel agent, requesting anonymity.
IATA typically has a weekly settlement system in place with travel agents.
The Jet Airways crisis has hit travellers hard due to lack of clarity on refunds for booked flight tickets while the sudden capacity shortage has led to higher fares.
“Due to recent capacity crunch, average airfares have risen more across metros, where the demand is likely to be high. Routes like Delhi-Mumbai and Delhi-Bengaluru are showing up to 60% increase in last minute fares," said Aloke Bajpai, chief executive and co-founder of travel portal ixigo.
On Wednesday, Jet Airways shares rose 0.79% to ₹171.25 apiece on the BSE while the benchmark Sensex gained 1.27% to end the day at 39,054.68 points.