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US orders Air India to pay $121.5 million as passenger refunds and $1.4 million as fines

Air India is among the six airlines that have agreed to cough up a total of over USD 600 million as refunds, the US Department of Transportation said on Monday.

November 15, 2022 / 09:50 AM IST
Air India

Air India

The US has ordered Tata-group owned Air India to pay a whopping USD 121.5 million as refunds and USD 1.4 million as penalties for extreme delays in providing refunds to passengers due to the cancellation or change in flights, mostly during the pandemic, officials said.

Air India is among the six airlines that have agreed to cough up a total of over USD 600 million as refunds, the US Department of Transportation said on Monday.

Air India's policy of 'refund on request' is contrary to the Department of Transportation policy, which mandates air carriers to legally refund tickets in the case of cancellation or change in flight, officials said.

The cases in which Air India was asked to pay the refund and agreed to pay the penalty were before the national carrier was acquired by the Tatas.