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DISTRICT COURT THRISSUR, KERALA HELD AIR ASIA LIABLE FOR DEFICIENCY IN SERVICE AND UNFAIR TRADE PRACTICES

Introduction  

District Consumer Disputes Redressal Commission in Thrissur, Kerala (India), held AirAsia India Limited liable for deficiency in service and unfair trade practices.

Facts and Background

In this matter, a passenger's flight was cancelled by the airline for operational reasons. Under applicable rules (including those from India's Directorate General of Civil Aviation or DGCA, and the Consumer Protection Act), passengers are typically entitled to a full refund in such cases, and many airlines (including low-cost carriers like AirAsia) are expected to process automatic refunds promptly without requiring manual claims in straightforward cancellations.

However, AirAsia failed to issue an automatic refund for the ticket amount (which was ₹2,983). The passenger made repeated attempts to obtain the refund but faced ongoing issues and harassment, ultimately having to approach the consumer forum to recover even this small sum. This caused financial loss, inconvenience, and mental agony (harassment, stress, and frustration from the ordeal).



Observations 

The Commission, after hearing the case, ruled in favor of the complainant in December 2025. It found that:

The failure to process the refund automatically (or at all in a timely manner) constituted a clear deficiency in service under Section 2(11) of the Consumer Protection Act, 2019. It also amounted to unfair trade practices and gross negligence by the airline. The passenger suffered harassment and mental agony due to the sudden cancellation combined with the prolonged refund denial, which forced legal action for a minor amount.

The forum directed AirAsia to pay:

Full refund of the ticket fare: ₹2,983, along with interest at 9% per annum from June 15, 2021 (likely the date of cancellation or relevant start point) until the amount is realized/paid.

₹10,000 as compensation for mental agony and inconvenience caused to the passenger.

₹2,500 towards litigation costs.

Conclusion

This decision reinforces passenger rights in India: Airlines must handle refunds efficiently for cancellations (especially those initiated by the airline), and failure to do so can lead to compensation awards beyond just the ticket amount, including for mental distress—even in cases involving relatively small fares. Similar rulings have occurred in other consumer forum cases against airlines for refund delays or failures.



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