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Non-refundable airline tickets will be introduced in Russia after all

08:07, 3 августа 2012

The Ministry of Economic Development supported the Ministry of Transport’s proposal to introduce non-refundable airline tickets. We remind you that the Ministry of Transport suggests giving the airline companies the right to introduce special rates, for which in the occasion that the passenger should wish to decline the flight, the money for such tickets will not be refunded to citizens. Such changes are planned to be made to the Air Code.

 

The cost of non-refundable tickets will be lower than for normal tickets. Passengers can acquire such tickets in advance. But on any given route of any company, the number of tickets sold for non-refundable rates can be no more than 30% of all tickets sold. At the same time, money taken for fees and charges, services which were not actually provided will still be refunded to the passenger. Airline carriers are also required to notify passengers of the refund conditions in advance, at all places such tickets are sold, or on the tickets themselves, or on their own websites.

 

With an ordinary ticket, in the event that the passenger declines to fly, and returns the ticket 72 hours before the flight, they have the right to a refund of the full purchase price, excluding reservation charges. If the ticket is returned any later, a forfeit fee is also retained. But the amount of such a fee can be no higher than 25% of the total ticket price.

 

The Ministry of Transport expects that the introduction of non-refundable tickets will be in demand by passengers for whom the price is the deciding factor. These rates are widespread in global practice and allow foreign companies to sell a significant amount of tickets even for the most popular dates and routes for lower costs. At the same time there is no risk that the airline company will suffer losses because the passenger will decline to fly and it won’t be able to resell the ticket. In Russia, Airflight carriers did not have such an opportunity until now.

 

According to data from the Ministry of Transport, airline companies losses due to a passengers refusal to fly for any reason, make up 8% of total revenue of sales for regular flights. That’s around 22.7 billion roubles.

 

We would like to point out that the International Confederation Society of Consumers spoke out against the introduction of non-refundable tickets. “The practice of selling non-refundable tickets is not something that we should be taking up from the West. If the service isn’t provided, the customer should have the right to a full refund of their funds”, - announced the Chairman of the Board KonFOP, Dmitryi Yanin.

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