AI fined ₹10L for denying boarding

NEW DELHI: The Directorate General of Civil Aviation (DGCA) on Tuesday fined Air India ₹10 lakh for not compensating passengers denied boarding on overbooked flights, according to a government statement that termed it “a matter of serious concern”.

It added that it was “unacceptable” that the airline was not paying compensation to “hapless passengers” denied boarding despite having confirmed bookings, and that it does not have a policy in this regard.

Last month, the DGCA directed all Indian airlines to provide compensation and facilities to passengers denied boarding despite reporting at the airport on time, or in event of flight cancellation or delay.

Noting that some airlines have been indulging in “unfair practice” of denying boarding to passengers, the aviation regulator at the time warned that “strict action will be initiated against the erring airline, including imposing financial penalties as per regulations” in case of violation of the directive.

“...a series of checks were carried out by the DGCA and during our surveillance at Bengaluru, Hyderabad, and Delhi, there were specific instances in the case of Air India where the regulation is not being followed. Therefore, a show-cause notice was issued to the airline and a personal hearing was afforded,” DGCA director general Arun Kumar said in the statement on Tuesday. “In specific cases, detailed in the show cause notice, after going through AI submissions, as part of enforcement action, the competent authority has levied a penalty of ₹10 Lakh,” he added.

Air India, the former national carrier which was sold to the Tata group last year, was also told to immediately put the systems in place to resolve the issue, failing which, further action will be taken by the DGCA.

“Air India is the only airline, both nationally and internationally, that does not compensate passengers for being denied boarding without any fault of theirs. However, they have assured to improve and follow civil aviation requirements from now on,” a DGCA official said on condition of anonymity.

According to the DGCA’S civil aviation requirements notified in 2010, an airline is not required to pay any compensation to passengers if an alternative flight is arranged within an hour of the scheduled departure.

In case the airline arranges for an alternative flight within 24 hours of denial of boarding, it must pay 200% of the booked one-way basic fare plus airline fuel charge subject to a maximum of ₹10,000.

If the alternative flight is scheduled to leave more than 24 hours after the scheduled departure of the original flight, the airline is liable to pay 400% of the booked one-way basic fare plus airline fuel charge subject to a Rs 20,000 cap. “Our stipulations on the subject are in sync with the FAA (US regulator Federal Aviation Administration) and the EASA (European Union Aviation Safety Agency) and similar regulations are followed globally to accord appropriate respect to passenger rights,” Kumar said.

AIR INDIA WAS ALSO TOLD TO IMMEDIATELY PUT THE SYSTEMS IN PLACE TO RESOLVE THE ISSUE