Which regulation applies?
Insolvency and Bankruptcy Code 2016 (IBC) — passenger refunds are operational/unsecured debt, ranked below secured creditors.
Source: https://ibbi.gov.in
Source: https://ibbi.gov.in
Step-by-step: what to do now
- 1 If the airline's grounding is announced before your flight, file a credit-card chargeback IMMEDIATELY (within 60 days of the original booking date for international cards, or 60 days from grounding date for Indian cards). Cite "services not rendered."
- 2 If you booked via HappyFares with credit card, HappyFares helps coordinate the chargeback documentation with your bank. Provide: original booking confirmation, airline grounding news article, denial of refund letter (if any).
- 3 File a claim with the airline's IBC Resolution Professional (named in the bankruptcy filing). This is the formal route, but historical recovery is slow (3-7 years) and partial (0-30% of fare).
- 4 If you have travel insurance with "supplier bankruptcy" cover (Acko Flight Protection includes this), file the insurance claim with the same documentation as the chargeback.
- 5 If you have a Smart Saver (CFAR) add-on, file the claim through HappyFares — CFAR refunds 60-80% within 5 business days regardless of the underlying cause.
- 6 Combine all three recovery routes (chargeback + insurance + CFAR + IBC claim) — they are NOT mutually exclusive. Realistic recovery: 60-100% of fare value within 30-60 days, with the IBC trickle adding 5-20% more over years.
Compensation / refund table
| Scenario | Amount / outcome | Notes |
|---|---|---|
| Credit-card chargeback | 100% of ticket value | File within 60 days of grounding; cite "services not rendered" |
| IBC unsecured claim (formal route) | 0-30% historically; 3-7 year cycle | Jet Airways: ~7% recovery. Go First: pending. Kingfisher: ~0%. |
| HappyFares Smart Saver (CFAR) | 60-80% of fare | 5 business days; no proof required |
| Travel insurance with supplier-bankruptcy cover | 80-95% of fare | Acko Flight Protection includes; many other policies exclude |
| Premium credit-card travel insurance | Up to ₹50,000 per trip | HDFC Infinia, AmEx Platinum, ICICI Emeralde |
Time limit: Credit-card chargeback: within 60 days of grounding/booking. IBC claim: per Resolution Professional notice (typically 90 days from public announcement). Smart Saver / insurance: per policy (typically 30-90 days).
HappyFares SmartSaver can help
HappyFares Smart Saver pays 60-80% within 5 business days — the fastest recovery in any airline-bankruptcy scenario. Stacks on top of credit-card chargeback for combined 90-100% recovery.
Learn more →Frequently asked questions
How much did Jet Airways passengers recover when the airline went bankrupt?
Around 7% of fare value via the IBC Resolution Professional, paid out over 5+ years. Passengers who filed credit-card chargebacks within 60 days of grounding recovered 100% directly from their banks (Visa/Mastercard charge the bankruptcy estate; you get full ticket value).
Will Go First passengers get refunded?
Go First IBC proceedings are ongoing. As of 2026, the Resolution Plan is pending NCLT approval. Realistic recovery estimate: 0-20% of fare value over 2-4 more years. Credit-card chargeback (filed in 2023) was the only path for full direct recovery.
What if I booked with debit card or net banking?
Recovery is harder. Debit-card chargeback exists (under RBI rules) but is less standardised than credit-card. Net banking and UPI have no chargeback mechanism — you rely entirely on insurance, Smart Saver, or the IBC committee.
Can the airline's OTA partner (like HappyFares) refund me?
HappyFares passes through the airline's refund — we don't hold ticket funds beyond the booking cycle. If the airline goes bankrupt, the airline's grounded funds (not ours) are what passes through IBC. HappyFares helps coordinate chargeback documentation but cannot independently refund.
Do all credit cards offer chargeback?
All Visa, Mastercard, AmEx, Diners cards globally offer chargeback under "services not rendered." Indian RuPay also offers chargeback (per NPCI rules). The chargeback must be filed within the network's window (typically 60-120 days from the disputed transaction).