Airlines would soon have to pay dearly for denying boarding to travelers with confirm tickets who reach airport well in time for their flights. The government is planning to hike the current denied Boarding compensation of about Rs 2,000 by making it directly proportional to the price at which the air ticket was bought.
The Directorate General of Civil Aviation (DGCA) has circulated a note on this issue to airlines and DGCA chief Arun Mishra has called them for a meeting this week.
The regulator had three years back framed rules for airlines to pay flyers up to Rs 4,000 for denied boarding which actually meant Rs 2,000 in majority of such cases. A rethink on this happened due to two reasons .
A consumer court recently termed the current compensation amount inadequate as airfares have shot up dramatically from 2009 when the compensation amounts were set and when low cost flying was a reality in India. Secondly, cash-strapped airlines trying to increase their ancillary revenue (generated from things other than ticket sales) have hiked no show and rescheduling charges.
"In these circumstances, a fine of Rs 2,000 can hardly be deterrent enough against wrongly denying boarding. The plan is to link the compensation to say between 30 per cent and 50 per cent of the ticket price. If airlines are right in safeguarding their interest, the consumer also must be protected ," said a senior aviation official.
Airlines routinely overbook 3% to 4% on a flight to factor in for last-minute no shows. If a flyer reports after check-in for the flight is closed, he or she may be taken on subsequent flights subject to seat availability and a payment of Rs 1,500. Airlines refund only airport charges to no shows and retain the basic fare and fuel surcharge.
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