US imposes $1.4 mn fine on Air India over delay in refunds
Tags: International News
Tata Group-owned Air India has been fined $1.4 million in penalties for delayed refunds amounting to $121.5 million for delayed or cancelled flights, under an order from the US Department of Transportation.
Under US law, airlines and ticket agents have a legal obligation to refund consumers in the event of a flight cancellation or a passenger not accepting the option offered.
According to US regulations, it is illegal for an airline to deny refunds and instead provide vouchers to such consumers.
The US Department of Transportation received a large number of complaints from air travellers that airlines had failed to provide timely refunds after cancellations or significant changes to flights.
The US Department of State has fined six airlines over delayed refunds, in what has been called a "historic" enforcement action.
The fine imposed on Air India is the third highest after Denver-based Frontier and TAP Portugal.
Apart from Air India, Frontier, TAP Portugal, Aero Mexico, EI AI and Avianca Airlines have also been fined by the US government.
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