Wednesday, September 26, 2018

Air India, Jet Airways paid more than a crore every month to passengers for flight cancellations, delays

The two struggling domestic airlines – Air India and Jet Airways - paid a hefty amount every month as a compensation for flight cancellations, delays etc. These expenses include refunds to passengers, rebooking on other flights, refreshments and hotel accommodation as and when required.
The two domestic carriers have spent Rs 26.6 crore so far in the year (January-August 2018) as compensation, according to Director General of Civil Aviation (DGCA) data.
The state-owned Air India paid as much as Rs 8.4 crore, which translates into Rs 1.05 crore per month, while Jet Airways paid Rs 14.55 crore in all, as compensation, or Rs 1.82 crore per month on an average.

Out of this, Rs 10.75 crore was paid in February alone for compensating 2,656 passengers for denying boarding, if we exclude this, Jet Airways spent around Rs 0.6 crore per month, on an average as compensation during January-August 2018.

Both Air India and Jet Airways have a very poor track record in terms of on-time performance of their flights and feature at the bottom of the list as compared to other scheduled domestic airlines.
26/09/18 CNBC TV18
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