Now, airlines to pay up to Rs 20,000 per flier for flight cancellation or denying boarding

July 18, 2016

New Delhi, Jul 18: Cancelling a flight or denying boarding to a flier is going to cost heavily to domestic airlines as the new guidelines by the aviation regulator DGCA provides for massive compensation in such cases.

cancelledAs per the revised compensation norms, which are effective from August 1, an airline will have to pay up to Rs 10,000 to a flier in the case of cancelling/delaying a flight beyond two hours, while the compensation for not allowing a passenger to board the flight stands at up to Rs 20,000.

As of now airlines offer a meagre amount of up to Rs 4,000 for both denied boarding and cancelling a flight.

The revised compensation has been arrived at after extensive consultations with all stakeholders including the airlines.

Fliers body, Air Passengers Association of India (APAI) founder and president D Sudhakara Reddy, however, has said that the new norms leave certain grey areas which need to be addressed.

Airlines shall pay a compensation of Rs 5,000 or booked one-way basic fare plus fuel charge, whichever is less for cancelled/ delayed flights having a block time of up to one hour in addition to refund of ticket, in case a flier has not been informed by the carrier as per the DGCA norms.

In the case of an airline cancelling/delaying its flight over one hour but up to two hours the compensation amount will be Rs 7,500 or booked one-way basic fare plus fuel charge, whichever is less, besides the refund amount, according to the revised norms.

An amount of Rs 10,000 or booked one-way basic fare plus airline fuel charge, whichever is less, will be the compensation for flights having a block time of more than two hours, according to the new compensation norms.

Block hours refer to the period when an aircraft pushes back from its departure gate till the moment it reaches the arrival gate. These hours are used to calculate an airline?s on-time performance (OTP) besides determining the compensation in the eventuality of a flight getting cancelled or delayed.

In case of denied boarding, airline will have to pay an amount equal to 200 per cent of booked one-way basic fare plus airline fuel charge, subject to maximum of Rs 20,000, in case airline arranges alternate flight that is scheduled to depart within 24 hours of the booked scheduled departure, as per the revised norms.

An amount equal to 400 per cent of booked one-way basic fare plus airline fuel charge, subject to maximum of Rs 20,000, will have to be paid to a flier in case airline arranges alternate flight that is scheduled to depart beyond 24 hours of the booked scheduled departure, as per the revised norms.

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 Rs 20,000, will have to be paid to a flier, it said.

We have strong objection to certain issues. The operating airline would not have the obligation to pay compensation in the situations which are beyond the control of the airline including political instability and delays on the part of air traffic control, among others. How can the ATC delays be a reason for compensation and this leaves the decision in a grey area and will lead to many disputes. It is also not transparent ," Reddy questioned.

"Also, since no financial compensation shall be payable to passengers who have not provided adequate contact information at the time of making booking or when the ticket for firm travel on the selected flight is issued. This will lead to dispute settlement mechanism and which agency will be the responsible agency and in what time frame. This is especially true when it comes to transit passengers/connecting international passengers ," he said.

Besides, the burden of proof concerning the questions as to whether and when the passenger has been informed of the delay of the flight shall rest with the operating airline, Reddy said adding, " this is a grey area and leaves the burden of proof in the hands of the airline and can?t be accepted."

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News Network
January 12,2020

Kolkata, Jan 12: Prime Minister Narendra Modi on Sunday said a section of the youth is being misguided about the Citizenship Amendment Act and asserted that it will not take away anybody's citizenship.

Modi also said whoever has faith in India and believes in its Constitution can become an Indian citizen.

“There are a lot of questions among the youth about the new citizenship law, and some are being misled by rumours around it... it is our duty to clear their doubts,” the PM said during an address at Belur Math in Howrah district.

“I want to make this clear again that the CAA is not about taking away anybody's citizenship, but about granting citizenship,” he added.

Modi said that some people with political interests are deliberately spreading rumours about the new citizenship law.

Lauding the youth for speaking against religious persecution of minorities, the prime minister said the energy of the country's young will form the basis of change in the 21st century. The PM is on a two-day visit to the city.

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Agencies
March 9,2020

Mumbai, Mar 9: The mayhem in domestic stock markets deepened with the BSE Sensex falling over 2,400 points and the Nifty50 trading below 10,400 points.

The plunge in the domestic indices was in line with the global markets on persistent fears of economic impact of the coronavirus epidemic.

Stocks of Reliance Industries registered the biggest fall in over 10 years as it fell to Rs 1,094.95 per share. At 1.34 p.m., it was trading at Rs 1,100, lower by Rs 170.05 or 13.39 per cent from its previous close. The stock fell most since October 2008.

The benchmark index of BSE Sensex was trading at 35,232.67 points, lower by 2,343.95 points or 6.24% from the previous close of 37,576.62 points. 

It had opened at the intra-day high of 36,950.20 and has so far touched a low of 35,109.18.

The Nifty50 on the National Stock Exchange was trading at 10,314.25 points, lower by 675.20 points or 6.14% from the previous close. 

It was a sell-off across sectors, led by financial, metal, energy and IT stocks - which weighed on the markets.

Further, crude oil prices also slumped around 30% on Monday as Organization of Petroleum Exporting Countries (OEPC) failed to agree on an output cut deal, eventually causing Saudi Arabia to cut its prices as it is likely to increase its production. Saudi Arabia's stance has already raised concerns of an all-out price war.

Brent crude futures are currently trading around $34 per barrel.

On Saturday, Saudi Arabia announced massive discounts to its official selling prices for April, and the nation is reportedly preparing to increase its production above the 10 million barrel per day mark, according to reports.

As per analysts, the oil market witnessed the worst price fall on Monday since the 1991 Gulf War.

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Agencies
January 19,2020

Thiruvananthapuram, Jan 19: The CPI(M) will soon launch a nation-wide house-to-house campaign to explain to the people, the 'link' between CAA-NPR-NRC, party general secretary, Sitaram Yechury said on Sunday.

The intense campaign will take place all over the country, he said while briefing the media about the three-day central committee held at Vilapilsala near here.

The central committee also urged the people not to answer the NPR questions.

"The Central committee has called upon the people not to answer any questions concerning the NPR when the enumerators come to their houses...," the left leader said.

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