It is not unusual for airlines to overbook hoping there would be some ticket cancellations before the time of the flight. But when all or most passengers turn up for the flight, they find themselves in a spot and are forced to deny boarding to some passengers.
Recently, when United Airlines forcibly removed an Asian passenger from an overbooked flight between Chicago to Louisville, it received flak from all quarters. Amid the furore that followed, the airline had to apologise for its behaviour. Many questions were raised on airlines' liability in such cases. Can passengers claim compensation in the event of being deboarded for want of room?
In India, rules require airlines to compensate passengers denied boarding. Last year, the Directorate General of Civil Aviation (DGCA) enhanced the compensation payable to passengers for denied boarding. The scale of compensation and benefits varies for passengers who voluntarily vacate their seats and those who are denied boarding against their will.
However, the rules in India and other countries, like the US for example, are different. In the US, those volunteering to vacate seats can negotiate compensation with the airline. Volunteers in India do not get a compensation but are entitled to benefits and facilities that an airline might offer at its discretion.
“The US Department of Transportation (DOT) has not mandated the form or amount of compensation that airlines offer to volunteers. DOT does, however, require airlines to advise any volunteer whether he or she might be involuntarily bumped and, if that were to occur, the amount of compensation that would be due. Carriers can negotiate with their passengers for mutually acceptable compensation. Airlines generally offer a free trip or other transportation benefits to prospective volunteers. The airlines give employees guidelines for bargaining with passengers, and they may select those volunteers willing to sell back their reservations for the lowest price,” DOT has said on its website.
The passengers who are denied boarding against their will are compensated by airlines both in India and the US. However, in the US “DOT requires each airline to give all passengers bumped involuntarily a written statement describing their rights and explaining how the carrier decides who gets on an oversold flight and who doesn't.” But in India, there is no such provision.
The compensation limits are graded, but airlines in the US pay compensation only if they are not able to arrange an alternative flight arriving the destination within an hour from the passenger's original scheduled time. Contrarily, airlines in India are not liable to pay compensation if a passenger is offered a seat on an alternative flight to the same destination within an hour of the original scheduled departure time.
Also, the passengers who are denied boarding in India are entitled to a maximum compensation of 400 per cent of the booked one-way basic fare, plus fuel surcharge, subject to a maximum of Rs 20,000, in case an alternative flight is arranged 24 hours after the original scheduled departure. In case a passenger does not opt for an alternative flight, he or she is entitled to a refund of full value of the ticket, along with a compensation equal to 400 per cent of the booked one-way basic fare, subject to a maximum of Rs 20,000.
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