Aviation regulator, Directorate General of Civil Aviation (DGCA) has issued guidelines for compensation paid to passengers by domestic airlines in case of flight cancellation or denied boarding.
With effect from August 1, airlines will compensate its passengers with up to ₹10,000 for flight cancellation or delay beyond two hours, and up to ₹20,000 for disallowing a passenger to board the flight.
Earlier, passengers were given ₹4,000 compensation for flight cancellation and denied boarding.
Under the new regulations, in case of cancelled/delayed flights with a block time of one hour, the passenger will be paid ₹5,000 compensation or booked one-way basic fare, airline fuel charge and ticket refund, whichever is lower.
Block hours are calculated form the time the aircraft closes doors for departure to when it opens doors after landing. Block time includes taxing-out to the runway and taxing-in to the arrival gate plus flight duration. The industry uses these variables to compute an airline’s utilisation and on-time performance.
In case of cancelled/delayed flights with a block time of over one hour but under two hours, the passenger will be paid ₹7,500 compensation or booked one-way basic fare, airline fuel charge and ticket refund, whichever is lower.
In case of cancelled/delayed flights with a block time of over two hours, the passenger will be paid ₹10,000 compensation or booked one-way basic fare, airline fuel charge and ticket refund, whichever is lower.
DGCA also mandates that airlines inform passengers of a cancelled flight, at least two weeks prior to its scheduled departure, and offer a refund or alternate flight option. Should airlines inform passengers less than two weeks but over 24 hours before the cancelled flight’s scheduled departure, airlines must offer an alternate flight that takes off within two hours of their originally booked departure time. Failing these conditions, airline will compensate passengers as per the amounts listed above.
As for denied boarding in case of overbooked flights (unless passengers are offered a seat on a flight scheduled to depart within one hour of the originally scheduled departure), DGCA has listed the following compensations:
a) An amount equal to 200 per cent of booked one-way basic fare plus airline fuel charge, subject to maximum of INR 10,000, in case airline arranges alternate flight that is scheduled to depart within the 24 hours of the booked scheduled departure.
b) An amount equal to 400 per cent of booked one-way basic fare plus airline fuel charge, subject to maximum of INR 20,000, in case airline arranges alternate flight that is scheduled to depart more than 24 hours of the booked scheduled departure.
c) In case passenger does not opt for 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 INR 20,000.
Compensations will be paid in cash, by bank transfer or with the signed agreement of the passenger in the form of travel vouchers.
Click here for DCGA’s full list of compensations.
