Monday, August 20, 2012

Denied boarding: Travelers to get bigger compensation, linked to fares

New Delhi: Denying boarding to travelers with confirm tickets who reach airport well in time for their flight could soon cost airlines dearly. The government is planning to hike the current denied boarding compensation of about Rs 2,000 by making it directly proportional to the price at which the air ticket was bought.
The Directorate General of Civil Aviation (DGCA) has circulated a note on this issue to airlines and DGCA chief Arun Mishra has called them for a meeting this week.
The regulator had three years back framed rules for airlines to pay flyers up to Rs 4,000 for denied boarding which actually meant Rs 2,000 in majority of such cases. A rethink on this happened due to two reasons .
A consumer court recently termed the current compensation amount inadequate as airfares have shot up dramatically from 2009 when the compensation amounts were set and when low cost flying was a reality in India. Secondly, cash-strapped airlines trying to increase their ancillary revenue (generated from things other than ticket sales) have hiked no show and rescheduling charges.
20/08/12 Saurabh Sinha/Economic Times
To Read the News in full at Source, Click the Headline

0 comments:

Post a Comment