Thursday, June 30, 2016

Tardiness of crew forces Air India to pay Rs 3 crore in compensation

Tardiness of crews is among a host of reasons that triggered flight delays and forced cash strapped Air India to pay Rs 3 crore in compensation over the past five months as about two lakh passengers were left stranded at airports for hours.
The national carrier also fares worst when it comes to the number of travellers hit by lack of punctuality. The situation is so bad that Air India accounts for nearly 80 per cent of the total compensation paid by Indian carriers.
These are some of the findings in a report of the Directorate General of Civil Aviation (DGCA). On an average, other airlines end up paying Rs 2-3 lakh every month while Air India shells out Rs 60 lakh. The state-owned carrier, threatened by losses and bloated costs, has ceded significant market share since the country liberalised commercial aviation in the 1990s. Last month, Air India ended up paying Rs 72 lakh to passengers affected by delays. In addition to the compensation, the airline also had to arrange meals, accommodation, transit and refunds, which makes the amount much higher. According to reports, Air India has about Rs 28,000 crore in accumulated losses.
30/06/16 Ankur Sharma/India Today
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