Under duress, Centre may water down flyer compensation rules

A proposed change of rules that would have made airlines liable to pay more compensation in the case of delayed and cancelled flights as well as for missed connecting flights has been put on the back burner under pressure from airline companies.

“Airlines have opposed the proposed rules. It will take some time before they are finalised,” said a senior aviation ministry official.

The draft rules on the passenger charter were made public on May 22. Then the government had said after a public consultation of 30 days, the final rules would be notified by July 15.

“Even when they are finalised, they are unlikely to retain the clauses that increase the financial penalty for airlines for delay and cancellation,” the official added.

The Federation of Indian Airlines, the lobby group, has argued any additional commercial burden due to increased compensation will create stress for the finances of the airlines, which are reeling from the twin costs of high fuel price and a fluctuating exchange rate.

The finances of airlines have been under severe stress also due to their inability to increase fares, despite a sharp increase in the cost of operations.

“In a recent meeting, the airlines have said that no intervention has come from the government in terms of policy to reduce the cost of doing business. In such times, any additional input cost will be detrimental to the sector,” said an airline executive present in the meeting.

The airlines, it has been learnt, have opposed the rules that make it compulsory for them to pay compensation to passengers in case a flight is delayed by more than four hours. The Directorate General of Civil Aviation had proposed the compensation amount equivalent to the ticket price.

Airlines, while suggesting the threshold of delay be increased to six hours in matters of compensation, have said instead of a full refund of the fare, they should be allowed to make alternative arrangements.

The rules also proposed to make airlines liable to pay compensation if a passenger missed a connecting flight.