Air India fined Rs10 lakh for not compensating passengers denied boarding: DGCA
In a statement, the aviation regular said it was “a matter of serious concern and unacceptable” that the airline was not paying any compensation to “hapless passengers” denied boarding and did not have a policy in this regard
The Directorate General of Civil Aviation (DGCA) on Tuesday imposed a Rs10 lakh fine on Air India for not compensating passengers with confirmed bookings denied boarding on overbooked flights.
In a statement, the aviation regular said it was “a matter of serious concern and unacceptable” that the airline was not paying any compensation to “hapless passengers” denied boarding and did not have a policy in this regard.
DGCA recently reiterated the existing regulations on compensation for passengers and told airlines to strictly abide by the regulations.
“After that, a series of checks were carried out by 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.
“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 Rs. 10 Lacs,’ the statement said.
Kumar said the airline has been told to immediately put the systems in place to resolve the issue failing which, further action will be taken by DGCA.
According to DGCA’s civil aviation requirements notified in 2016, 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 Rs10,000.
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 Rs20,000 cap.
‘Our stipulations on the subject are in sync with FAA (US regulator Federal Aviation Administration) and EASA (European Union Aviation Safety Agency) and similar regulations are followed globally to accord appropriate respect to passenger rights,” Kumar added.