Airlines must compensate passengers for delays: DGCA

Mumbai: Airline passengers hassled by delays and cancellations have reason to rejoice.
In a draft issued today, the Directorate General of Civil Aviation (DGCA) has asked airline operators to provide financial compensation to passengers for flights having a block time of two hours or more.
The compensation could be between Rs 2000-4000 or the value of the ticket, whichever is lesser, and should be paid within a stipulated time frame.
The regulatory body has invited public opinion on the draft Civil Aviation Rule (CAR) about facilities to be provided by airlines if a passenger is denied boarding, cancellation of flights and delays.
The facilities are to be provided by both, scheduled as well as non scheduled airlines, and the onus of providing facilities will lie upon the airline which operates the flight.
Analysts expect the industry to be unhappy with the possibility of an additional financial burden. “The airline industry is already suffering from losses. It is best practice to provide some sort of compensation, however, the range mentioned in the draft is going to burn a hole in the pocket of airline operators. I don’t expect the draft to become a rule, as it will face opposition from the industry,” said an analyst.
However, the draft says that the compensation will not be extended to passengers in cases of cancellations or delays caused due to political instability, natural disasters, civil wars, insurrection or riot, flood, explosions, government regulation, strikes or labour disputes and delays attributed to Air Traffic Control (ATC), among others.
Although the aviation industry has been experiencing high on-time performance (OTP) of 81. 4 per cent for May and a 21.95 per cent growth in passenger revevnues on a year-on-year basis, cancellation rates of flights and passenger complaints remain high.
22/06/10 Sneha Kupekar/Business Standard

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Categories: Indian Aviation- In General Jun 2010