US transport dept fines Air India $1.4 mn for delaying refunds of $121 mn

Refunds were on account of flights cancelled during Covid-19 pandemic; AI among six airlines that collectively forked out $600 mn in refunds and $7.25 mn in penalties

The US Department of Transportation (DOT) has fined Air India $1.4 million (around Rs 11.3 crore) for delaying refunds worth $121.5 million (around Rs 985 crore) to passengers whose flights were cancelled during the Covid-19 pandemic.

Air India is among the six airlines that were probed by the US government. Totally, over $600 million in refunds were paid and $7.25 million penalties imposed against six airlines for “extreme delays in providing refunds,” the US DOT said. Other airlines facing the DOT action include Frontier Airlines, TAP Portugal, Aeromexico, El Al Airlines and Avianca.

In a statement Air India said it