Don’t miss the latest developments in business and finance.

Airlines to compensate passengers for delays

Image
Press Trust Of India New Delhi
Last Updated : Jan 21 2013 | 4:14 AM IST

Airlines will now have to pay compensation to passengers who have been denied boarding or whose flights have been delayed or cancelled without prior notice, barring situations beyond their control.

In a new Civil Aviation Requirement (CAR) issued today, which will be effective from August 15, the Directorate General of Civil Aviation (DGCA) has made it mandatory for airlines to pay compensation for delay and cancellation of flights. Passengers would also be entitled to compensation if they were denied boarding, despite having a confirmed ticket, the CAR stated.

However, airlines will not be liable to pay compensation, if the delay or cancellation takes place due to reasons beyond their control. Strike, labour problems and Air Traffic Control-related delays were some of such factors, sources said. Airlines are also exempted from paying compensation in case of political instability, natural disaster, civil war, insurrection or riot, flood, explosion, government regulation or order affecting the aircraft, meteorological conditions and security risks.

Passengers will be entitled for a compensation of Rs 2,000 to Rs 4,000, if their flights are delayed from two hours to four hours. If a passenger, who have a confirmed ticket and reported well ahead of the scheduled departure, is denied boarding due to “overbooking”, the airline will be liable to compensate the passenger. Airlines overbook their flights to a limited extent to reduce the possibility of planes departing with empty seats because of ‘No Shows’, which means passengers do not report for travel, despite confirmed bookings.

Also Read

First Published: Aug 07 2010 | 1:56 AM IST

Next Story