Revised compensation norms in case of cancellation or delay of domestic flights
Posted on: 18/Jul/2016 10:48:21 AM
New guidelines by the DGCA which is the aviation regulator in India has included heavy fines and compensations for domestic airlines that cancel a flight or deny boarding to a flier. The revised compensation norms are effective from August 1 this year. According to the norms, an airline will have to pay up to Rs 10,000 to a flier in the case of cancelling or delaying a flight beyond two hours. The norms also state that the compensation for not allowing a passenger to board the flight stands at up to Rs 20,000.
Currently, in case of both events, airline offer up to Rs. 4,000 as compensation. Extensive consultations with all stakeholders has resulted in the revised norms. Officials at the Air Passengers Association of India, or the APAI, have said that the new norms leave certain grey areas which need to be addressed.
In case a flier has not been informed by the carrier as per the DCGA norms, airlines shall pay a compensation of Rs 5,000 or booked one-way basic fare plus fuel charge, whichever is less for cancelled or delayed flights having a block time of up to one hour in addition to refund of ticket. Similarly, in the case of an airline cancelling or 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.
The new norms also state that 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.
The period when an aircraft pushes back from its departure gate till the moment it reaches the arrival gate are called block hours. The airlines OTP, or on time performance, is calculated based on these hours. The hours also determine the compensation in the eventuality of a flight getting cancelled or delayed.
The revised norms also state that in case of denied boarding, airline 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 alternate flight that is scheduled to depart within 24 hours of the booked scheduled departure.
