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
February 16,2020

Washington, Feb 16: India and the United States share "unshakeable" ties, said US Principal Deputy Assistant Secretary (PDAS), Alice Wells, on Sunday, adding that the upcoming visit of President Donald Trump will further strengthen the relationship between the two countries.

"The U.S. and #India enjoy a close partnership that grows stronger day by day. Together, we are breaking records. For example, we welcomed a record number of Indian exchange students to the US last year and hope to receive even more this year," said Bureau of South and Central Asian Affairs in a tweet attributed to Alice Wells.

"The ties between our countries are unshakeable, and we look forward to an even warmer relationship as @narendramodi hosts @POTUS later this month," it added.

Trump will pay a two-day state visit to India from February 24 at the invitation of Prime Minister Narendra Modi.

"India is at the heart of the Indo-Pacific region and plays an increasingly prominent role on the world's stage. The U.S. looks forward to partnering with #India at every step of the way, " Alice Wells further said.

According to the Ministry of External Affairs (MEA), Trump is expected to attend an event at the Motera Stadium in Ahmedabad on the lines of the ''Howdy Modi'' function that was addressed by the US President and PM Modi in Houston in September last year. Trump is slated to pay a two-day visit to India from February 24.

During the visit, Trump, who will be accompanied by First Lady Melania, will attend official engagements in New Delhi and Ahmedabad, and interact with a wide cross-section of the Indian society, the MEA said in a statement.

The announcement of Trump's first official visit to India was earlier made by the White House on Monday, which, in its statement, said that the US President and Modi had agreed during a recent phone conversation that the trip will "further strengthen the United States-India strategic partnership and highlight the strong and enduring bonds between the American and Indian people".

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News Network
March 26,2020

Mar 26: As Kashmir reported its first COVID-19 death on Thursday, Islamic scholars urged people to follow the Ministry of Home Affairs guidelines on funeral and burial of those who die due to coronavirus pandemic.

“Medical science can’t be ignored and whatever directions there are in the (MHA) guidelines should be followed. As far as the funeral of the person, only family members should participate in the funeral and burial after wearing the protection kits,” the scholars said.

The MHA has stressed that there should be no bathing, kissing, hugging and reciting of verses while the body should be transported in a secured bag. Health experts have stressed that the grave for the person should be dug eight feet deep instead of normal six feet.

“The body of the person should be transported in a secured bag and the vehicle in which he is transported has to be decontaminated by the trained staff who should be wearing N-95 masks and protection equipment,” read the MHA guidelines.

Kashmir witnessed the first death of a COVID-19 patient from uptown city Hyderpora, who had a travel history of outside J&K as he was part of a ‘Tableegi Jamaat’.

Dr Naveed, Head of Department, at Chest Diseases Hospital Srinagar, said that no one from the family should go closer to the body and if someone from the family wants to see the face, he/she has to wear a complete protective gear.

“Burial bath is not recommended for the body. Grave for him should be dug eight feet deep instead of normal six feet,” he said.

As far as funeral prayers, he said, those intending to offer funeral should wear protective gear and maintain sufficient distance between the body and people.

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News Network
March 6,2020

New Delhi, Mar 6: As panicky depositors rushed to withdraw money from Yes Bank whose control was seized by the RBI in a dramatic late-night move, Finance Minister Nirmala Sitharaman on Friday assured depositors that their money is safe and said the central bank was working for an early resolution of the crisis.

The Reserve Bank of India (RBI) on Thursday evening capped withdrawals at Rs 50,000 for the next one month and imposed strict limits on operations at the country's fourth-largest private lender that faced "regular outflow of liquidity" after an effort to raise new capital failed.

"I am in continuous interaction with the RBI. The RBI is fully seized of the matter and has assured they will give a quick resolution," Sitharaman said here.

She said no depositor will lose his or her money and insisted that the immediate priority is to ensure Yes Bank customers are able to withdraw money within the stipulated cap.

"I want to assure every depositor that their money shall be safe. Their monies are safe," she said. "I am constantly in contact with the RBI and the steps that are taken are taken in the interest of depositors, banks and economy. We are fully seized of the development."

She was talking to reporters after meeting State Bank of India (SBI) Chairman Rajnish Kumar. On Thursday, the SBI board gave its "in-principle" approval to exploring investment opportunities in Yes Bank.

"So I repeat, the depositors can be assured that their money is safe," she said.

Soon after the RBI takeover, depositors thronged Yes Bank ATMs to withdraw money and police had to be deployed in some places to control the crowds.

Yes Bank has 1,000 branches across the country.

Refusing to elaborate on her meeting with the SBI chairman, the minister said that "was on a completely different matter".

"RBI governor has given me assurance that there will be an appropriate resolution soon. No depositor will lose (money)," she said. "Reserve Bank has taken cognizance of the problem."

The central bank, she said, has gone through the "process over and over again to find out an amicable solution".

"And that has been over the last couple of months. So it is not as if they have come in suddenly now. We have been monitoring the situation," she said adding the RBI has appointed an administrator who previously was with the SBI.

"Both the RBI and the government are looking at this with all the details before them, not just today. I have personally monitored the situation over the last couple of months with the RBI. Therefore we have taken a course which will be in everybody's interest," she added.

Yes Bank had been seeking new capital since last year to bolster its ratios and quell questions about its stability due to its exposure to the non-banking finance industry entangled in a prolonged crunch in the local credit market.

The SBI chairman said the resolution to the Yes Bank crisis will come "very shortly".

"This is not a sectoral problem. It is a bank-specific problem," he said. "The RBI will take all steps to ensure financial stability."

On SBI picking up a stake in Yes Bank, he said the lender already has an in-principle approval for doing so.

"If SBI has to pick up a stake in Yes Bank, we have an in-principle approval for that," he said.

Commenting on the crisis at Yes Bank, Alka Anbarasu, Vice President – Senior Credit Officer, Financial Institutions, Moody's Investors Service, said: "RBI's moratorium on Yes Bank is credit negative as it affects timely repayment of bank depositors and creditors."

"While Moody's expects Indian authorities will take steps to prevent the weakness in the bank's viability from significantly impacting its depositors and senior creditors, the lack of a coordinated and timely action highlights continued uncertainty around bank resolutions in India," she said.

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