Airlines to Pay Rs 10,000 to Fliers for Cancelled, Delayed Flights

Thus far, airlines have offered a meagre amount of up to Rs 4,000 for both denied boarding and cancelling a flight.

Airlines will have to pay up to Rs 10,000 to a flier in the case of cancelling/delaying a flight beyond two hours. (Photo: iStockphoto)

Cancelling a flight or preventing a flier from boarding is going to cost domestic airlines heavily, as the new guidelines by aviation regulator DGCA provides for massive compensation in such cases.

As per revised compensation norms, which are effective from 1 August, an airline will have to pay up to Rs 10,000 to a flier in case of a flight is delayed by over two hours or cancelled. The compensation for not allowing a passenger to board a flight stands at up to Rs 20,000.

As of now, airlines offer a meagre amount of up to Rs 4,000 for both denied boarding and cancelling a flight. The revised compensation has been arrived at after extensive consultations with all stakeholders including the airlines.

Fliers body, Air Passengers Association of India (APAI) founder and president D Sudhakara Reddy, however, has said that the new norms leave certain grey areas which need to be addressed.

As per DGCA norms, 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.

An amount of Rs 10,000 or booked one-way basic fare plus airline fuel charge, whichever is less, will be the compensation for flights having a block time of more than two hours, according to the new compensation norms.

In case boarding is denied to a passenger, airlines will have to pay an amount equal to 200 per cent of booked one-way basic fare plus airline fuel charge, subject to maximum of Rs 20,000, in case airline arranges an alternate flight that is scheduled to depart within 24 hours of the booked scheduled departure, as per the revised norms.

In case the passenger does not opt for the alternate flight, refund of full value of ticket and compensation equal to 400 per cent of booked one-way basic fare plus airline fuel charge, subject to maximum of Rs 20,000, will have to be paid to the flier, it said.

We have strong objection to certain issues. The operating airline would not have the obligation to pay compensation in the situations which are beyond the control of the airline including political instability and delays on the part of air traffic control, among others.

D Sudhakara Reddy, President and Founder, Air Passengers Association of India (APAI)