Government instructs airlines not to cancel tickets booked with old Rs 500 and Rs 1000 notes

The central government has instructed airlines to ensure that tickets issued using the old Rs 500 and Rs 1,000 notes directly from counters at airports are "non-refundable" following an unusual surge in such bookings since the high-value currencies were demonetised two days ago.

Stepping up the fight against the black money menace, the government has demonetised the two high-denomination notes, but their use has been allowed for select purposes, including purchasing tickets from counters for air travel, train journey and travel in government-run buses till November 11.

The government's directive to airline operators came amid concerns that unscrupulous elements could be using air ticket booking as a means to convert their unaccounted cash into legal transactions by cancelling the bookings later and take back the refund.

Sources said the directive came from the "top level" in the government.Aviation regulator DGCA has asked the airlines to strictly make sure customers booking through counters at airports using the withdrawn Rs 500 and Rs 1,000 notes are not able to cancel or get any refund for such tickets, they added.

While there has been no official announcement from the government and DGCA about the directive, some airlines have already announced that air tickets booked in the last 48 hours using old currency notes will not be refunded or cancelled.

Airline officials said there has been a significant jump in over-the-counter booking of flight tickets since the government announced the demonetisation.

"We generally see bookings at the airport counters to the tune of Rs 20-25 lakh per day. However, in the last 48 hours, it has risen significantly to around Rs 1 crore, which is almost a four-fold jump," no-frills airline Spice Jet's spokesperson Ajay Jasra told PTI.

In a tweet, full-service carrier Vistara said "tickets sold at airport ticket counters with Rs 500 and Rs 1,000 currency notes are strictly non-refundable".