In what could prove a boon to harried Indian air travellers, the government is likely to force airlines that offload passengers or cancel a flight to pay compensation, besides refund the ticket price. The proposal forms part of detailed guidelines being prepared by the Directorate General of Civil Aviation (DGCA) and will be mandatory for all airlines.
According to the aviation regulator?s recommendations, airlines should pay affected passengers compensation of Rs 5,000 for flights up to 1,500 km and Rs 8,000 for flights of 1,500-3,500 km. In the case of overseas flights, compensation has been pegged at Rs 12,000. Compensation may be halved if a flight is delayed for up to four hours.
According to the draft guidelines, when a flight is overbooked, an airline must first ask for volunteers to give up their seats in return for agreed benefits. ?These must include the choice of either refund of the ticket with a free flight back to the passenger?s initial point of departure, or alternative transport to the passenger?s final destination,? the guidelines state. Compensation and restitution for passengers on cancelled flights will be the same.
The DCGA?s move comes as bad news for airlines, already hit by rising fuel costs and other operational expenses. However, aviation analysts say it will compel airlines to plan their schedules and ticket sales better as they cannot afford compensation payouts eroding already wafer-thin margins. ?This is certainly good news for passengers,? said one industry expert.
Airlines said they are studying the recommendations and would take steps to reduce problems faced by passengers. The government recently directed airlines to refund the cost of tickets not used owing to cancellations within one week.