New rules for flight delay compensation aimed at raising efficiency

A SpiceJet flight Representative image | Reuters

Airlines in India may need to pay passengers higher compensation when flights are delayed or cancelled, according to rule changes proposed by the civil aviation ministry, aimed at raising efficiency in the world’s fastest-growing aviation market.

The proposals, made public late on Tuesday, also cap the cancellation charges airlines can levy, and let passengers cancel or amend tickets without charge for up to 24 hours after booking. The ministry also proposed airlines should compensate passengers for any bodily injury sustained on board aircraft.

Moreover, the government has proposed that an airline will have to pay Rs 3,000 for loss of baggage and Rs 1,000 for damage. The entitlement for passengers relating to baggage is crucial as cases of missing, stolen and damaged luggage have been reported by passengers from time to time, often ending on a sour note with the airline concerned.

The proposals come after the government announced plans to invest millions of dollars to upgrade and build airports in a country where passenger traffic is rising 20 per cent annually.

“Given this rapid growth, it is necessary to dramatically improve the efficiency and convenience of our aviation system to enhance the passenger air travel experience,” the civil aviation ministry said in a statement accompanying the proposals.

The government of Prime Minister Narendra Modi last year launched a scheme to get millions of Indians to fly by improving air connectivity in small towns and lowering fares, giving rise to start-up airlines and boosting growth prospects for existing carriers such as InterGlobe Aviation Ltd’s IndiGo Airlines, SpiceJet Ltd and Jet Airways Ltd.

The government expects air passenger numbers to reach about 1 billion over the next 15 to 20 years from 117 million in 2017.

The ministry also proposed that if airlines are at fault for delays or cancellations, they need to compensate passengers up to Rs 20,000 ($293) or offer a full refund or provide free hotel accommodation, depending the nature of the issue.

At present, airlines mainly have to provide only refreshments when delays are under 24 hours.

Airport operators should also provide medical facilities, free Wi-Fi for 30 minutes and affordable food outlets at all airports, the ministry proposed.

The ministry said it will seek comments on the proposals from stakeholders including airlines and airports over the next 30 days, and that it expects to finalise rules in two months.

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