Akasa Air Ordered To Pay ₹1.08 Crore, Delhi Court Rules Cancellation Of 640-Seat Booking Was Breach Of Contract

New Delhi: A Delhi court has directed airline operator Akasa Air to pay Rs 1.08 crore to a travel agency after cancelling a confirmed group flight booking during the peak festive travel season.

The order was passed by District Judge Commercial Lalit Kumar at the Saket Courts Complex. The court held that the airline’s cancellation of the booking amounted to a breach of contract and caused financial loss to the travel agency.

Group Booking For 640 Seats

The dispute began when ABS Tours and Travels made a large group booking for flights between Delhi and Goa during the busy Christmas and New Year travel period in 2023.

According to court documents, the travel agency booked eight groups of tickets. Each group consisted of 80 seats, making a total of 640 seats.

These seats were booked for flights operating on different dates on the Delhi–Goa and Goa–Delhi routes during the holiday season, when travel demand is usually very high.

Advance Payment And Agreement

The travel agency paid an advance amount of around Rs 4.82 lakh to confirm the booking. As per the agreement between the two sides, the remaining 75 per cent of the payment was to be made 21 days before the scheduled flights.

However, about one month after the booking was confirmed, the airline cancelled the entire reservation.

Although the advance payment was eventually refunded, it was returned more than three months later.

Travel Agency Approaches Court

After the cancellation, the travel agency approached the court, stating that it had suffered financial loss because it could not sell the tickets during the peak holiday travel period.

The agency argued that the cancellation denied it a valuable business opportunity to earn revenue from the confirmed booking.

Court Calls It Breach Of Contract

The court ruled that a legally enforceable agreement was created once the airline generated Passenger Name Records (PNRs) and accepted the advance payment.

Referring to the Indian Contract Act, 1872, the judge said the airline’s action of cancelling the confirmed reservation amounted to a breach of contract.

The court noted that the cancellation took place during the busiest travel season, when flights to tourist destinations such as Goa see very high demand.

Because of this, the judge said the travel agent had a reasonable expectation of earning profits from the confirmed booking.

Rs 1.08 Crore Compensation Ordered

Considering the loss of business opportunity, the court ordered Akasa Air to pay Rs 1,08,80,000 as compensation for lost earnings.

The court stated that the airline’s cancellation deprived the travel agency of a real and predictable commercial chance to earn money during the festive travel season.

An Akasa Air spokesperson said the airline has noted the order issued by the Commercial Court in Saket, New Delhi, related to a commercial dispute with a travel agency. The company said it respects the judicial process and is currently reviewing the detailed order with its legal team.

Akasa Air added that it maintains fair and transparent relationships with its travel partners, who are an important part of its ecosystem. As the matter is under legal review and may involve further proceedings, the airline will not comment further at this stage.