New Norms Require Airlines To Pay Hefty Compensation For Flight Cancellation, Delay & Boarding Denial
July 18th, 2016
From August 1, cancelling a flight or denying boarding to a passenger will cost dearer to domestic airlines as the new norms set by the aviation regulator Directorate General of Civil Aviation (DGCA) provides for massive compensation in such cases.
As per the revised compensation norms, starting from the beginning of next month, domestic airlines will have to pay up to Rs 10,000 to fliers for cancelling or delaying of a flight for more than two hours. And if a passenger is denied boarding a flight, then the compensation can be up to Rs 20,000.
Till now, airlines offered a meagre sum of Rs 4,000 for denying boarding or cancelling a flight.
However, according to Air Passengers Association of India (APAI) founder and president D Sudhakara Reddy, the new norms need further clarity.
For instances, Airlines shall pay a compensation of Rs 5,000 or booked one-way basic fare plus fuel charge, whichever is less for cancelled/delayed flights having a block time of up to one hour in addition to refund of ticket, in case a flier has not been informed by the carrier as per the DGCA norms.
Block time is the period when an aircraft pushes back from its departure gate till the moment it reaches the arrival gate.
In the case of an airline cancelling/delaying its flight over one hour but up to two hours the compensation amount will be Rs 7,500 or booked one-way basic fare plus fuel charge, whichever is less, besides the refund amount, according to the revised norms. For delays or cancellations for more than two hours, the compensation will be ₹10,000 or booked one-way basic fare plus airline fuel charge, whichever is less.
Airlines will be slammed up to a big compensation if a flier is denied boarding. They have to pay an amount equal to 200% of booked one-way basic fare plus airline fuel charge, subject to maximum of Rs 20,000, in case airline arranges alternate flight that is scheduled to depart after more than 24 hours of the booked scheduled departure, as per the revised norms.