It said that it has already refunded 90% of the amount it owed to customers, which is approximately Rs 1,000 crore.

An IndiGo airlines flight in the air
Money Aviation Monday, December 07, 2020 - 14:26

IndiGo airlines will be refunding the payment made against all credit shells by January 31, 2021, the company announced on Monday. It said that it has already refunded 90% of the amount it owed to customers, which is approximately Rs 1,000 crore. After the lockdown was imposed and all flights were cancelled, many airlines put the ticket amount in a credit shell, which could be redeemed at a later date. This allowed airlines to hold on to the amount to tide over the lockdown period without returning it to passengers.  

“The sudden onset of COVID-19 and the resulting lockdown, brought our operations to a complete halt by the end of March of this year. As our incoming cash flow dried up, we were unable to immediately process refunds for cancelled flights and had to create credit shells for the refunds that were due to our customers,” Ronojoy Dutta, Chief Executive Officer of IndiGo said. However, with operations resuming and an uptick in demand, Dutta said that the company’s priority has been to refund credit shell amounts. 

“We are pleased to commit that we will disburse the full 100% credit shell payments latest by January 31, 2021. We would like to thank all our customers who stood by us for their patience and understanding during this unprecedented crisis,” he added.

Just last week, IndiGo also removed its leave without pay policy that it had enforced for its employees during the lockdown. 

In an email to employees, Dutta had said that the airline is hopeful it will be able to fly at 100% capacity by early next year, but international traffic was a concern. “While we are not yet out of the woods, we are certainly moving in the right direction” he had said. 

Stating that they lost a lot of money in the last six months, Dutta said in his letter that they need to ensure that IndiGo is profitable by the first half of 2021. “In anticipation of the improved revenue that I know we can deliver, we are removing Leave Without Pay across all departments from January 1, 2021,” he said. 

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