Coronavirus Lockdown: Mass ticket cancellations! AirAsia, Indigo, GoAir offer credit shells

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Coronavirus Update: Worried about refund from ticket cancellation? Here is a solution for your problem. Airlines like AirAsia, Indigo, and GoAir are offering credit shells, IE reported.

The report said that whenever such mass cancellations take place, it becomes a huge problem for airlines to refund every passenger. In the wake of unprecedented cancellations on the back of Coronavirus, airlines have been offering change in itinerary which is completely free.

On top of this, AirAsia, GoAir and Indigo will offer credit shells to the passengers, the report said.

What exactly are credit shells?

Offering credit shells means that the airline will give full amount of booking as a credit to the passenger. This credit can be used later by the passenger to book a ticket with the airline.

Many global airlines are following this practice given that there is no certain timeline as to when the operations will return to normal.

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In India, while announcing a complete lockdown for 21 days, Prime Minister Narendra Modi has suspended all International as well as domestic flights. While the flights were to resume their operations post March 31, they are now at halt till April 14, according to the new guidelines.

The airlines are also supporting the move. The IE report citing Ronojoy Dutta, CEO for Indigo said that the conditions are not exaggerated and this is a war that we (people) have to win. Therefore, from March 25, the company has suspended its operations in the support of the government, it added.

The report also addressed that the time is crucial as airlines have to measure their each and every move. While some airlines may get a breather from increasing operational cost, some will be needing relief from the government and stakeholders. They are also urging the government to come up with rescue strategies as the estimated revenue loss is on an upward track. The global aviation industry had estimated a loss of $113 billion earlier for this year. However, within a month, as the Coronavirus impact is still on a large scale, the losses are expected to go more than $252 billion.

(Source: Financial Express)

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