Business Traveller (India)

DGCA lists compensati­ons for cancelled/delayed flights

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has issued guidelines for compensati­on paid to passengers by domestic airlines in case of flight cancellati­on or denied boarding.

With effect from August 1, airlines will compensate its passengers with up to `10,000 for flight cancellati­on or delay beyond two hours, and up to `20,000 for disallowin­g a passenger to board the flight.

Until last month, passengers were given `4,000 compensati­on for flight cancellati­on and denied boarding.

Under the new regulation­s, in case of cancelled/delayed flights with a block time of one hour, the passenger will be paid `5,000 compensati­on or booked one-way basic fare, airline fuel charge and ticket refund, whichever is lower.

Block hours are calculated from the time the aircraft closes doors for departure to when it opens doors after landing. Block time includes taxing-out to the runway and taxing-in to the arrival gate plus flight duration. The industry uses these variables to compute an airline’s utilisatio­n and on-time performanc­e.

In case of cancelled/delayed flights with a block time of over one hour but under two hours, the passenger will be paid `7,500 compensati­on or booked one-way basic fare, airline fuel charge and ticket refund, whichever is lower.

In case of cancelled/delayed flights with a block time of over two hours, the passenger will be paid `10,000 compensati­on or booked one-way basic fare, airline fuel charge and ticket refund, whichever is lower.

DGCA also mandates that airlines inform passengers of a cancelled flight, at least two weeks prior to its scheduled departure, and offer a refund or alternativ­e flight option. Should airlines inform passengers less than two weeks but over 24 hours before the cancelled flight’s scheduled departure, airlines must offer an alternativ­e flight that takes off within two hours of their originally booked departure time. Failing these conditions, airlines must compensate passengers as per the amounts listed above.

As for denied boarding in case of overbooked flights (unless passengers are offered a seat on a flight scheduled to depart within one hour of the originally scheduled departure), DGCA has listed the following compensati­ons:

An amount equal to 200 per cent of booked one-way basic fare plus airline fuel charge, subject to a maximum of `10,000, in case the airline arranges an alternativ­e flight that is scheduled to depart within 24 hours of the booked scheduled departure.

An amount equal to 400 per cent of booked one-way basic fare plus airline fuel charge, subject to a maximum of `20,000, in case the airline arranges an alternativ­e flight that is scheduled to depart more than 24 hours after the booked scheduled departure.

In case the passenger does not opt for an alternativ­e 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 `20,000.

Compensati­ons will be paid in cash, by bank transfer or with the signed agreement of the passenger in the form of travel vouchers.

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