DGCA will act against carriers delaying compensation to offloaded passengers

15 Sep 2008

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New Delhi: Civil aviation authorities say they are determined to initiate action against airlines who delay compensating passengers offloaded due to over-booking or flight cancellation.

"We are watching the issue very closely. In the next two months, you can expect action against airline operators if they continue to violate norms and harass passengers," said Kanu Gohain, director general of civil aviation, in a media interview.

Gohain was referring to a government move initiated in May which sough to provide relief to airline passengers and simultaneously discipline airlines. He said the government was ''flooded'' with complaints from passengers.

Speaking of these guidelines, Gohain said that he carriers ''will have to comply."

In May, civil aviation regulator, the Directorate General of Civil Aviation (DGCA), drafted a policy to under which passengers were offered a slab-based compensation. Compensation under these rules would have to be made to passengers in case of long delays, flight cancellations or denial of boarding.

The norms require all scheduled and non-scheduled carriers to refund the ticket cost immediately.

The rules also set compensation at Rs5,000 for sectors shorter than 1,500 km, Rs8,000 for up to 3,500 km and Rs12,000 for flights longer than 3,500 km and for all international destinations.

The compensation package would not be applicable, however, under "extraordinary circumstances," such as conditions of calamities, emergencies or riots.

Government sources say that carriers are keen that the government waive the penalty clause proposed by the regulator, or to reduce the compensation to the basic fare. This, however, is a patently ridiculous proposition as the base fare can be as low as as Rs99 at times.

According to industry sources, airlines in India tend to overbook by around three per cent, in both the domestic and international sectors. This average is based on historic data of "no-shows" by passengers for that airline during specific periods.

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