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Airlines Will Have to Pay 400% Compensation to Passengers in Case of Offload Situation

Passengers will have to receive the full ticket booking amount along with 400% worth of compensation if an airline denies them to board at the very last minute. According to civil aviation minister Hardeep Singh Puri, if a passenger was denied by an airline to board a confirmed flight, then they have the full right to demand a refund. Furthermore, he says the airline should provide 400% compensation to such travellers and the total compensation should not exceed Rs 20,000, according to the minister. We have seen several times that some airlines offload passengers at the very last minute due to some issues and the government is trying to completely eradicate such instances in the coming days.

400% Compensation is a Must for Offloaded Passengers, Says Govt

In October 2019, it’s said that a total of 1,102 passengers were denied from boarding even after receiving confirmation from the airlines. It’s the best time for the government to step in and bring new rules to the table for passenger offload scenarios in India. Hardeep Singh Puri says the airline will have to pay the entire refund amount for the respective flight ticket along with 400% compensation (maximum of Rs 20,000).

Usually, passenger offload situation arrives when the airlines overbook than the available seats in a flight. This is the most common exercise from airlines to make a profit. Diving into the details, Air India offloaded a whopping 822 passengers in just October 2019, which was followed by SpiceJet with 226 passengers, IndiGo (35) and AirAsia (14). Last on the list is Vistara which offloaded just five passengers in October 2019. It’s also confirmed that the total compensation provided to these passengers is 47 lakhs.

Offloading also explains the situation of an airline on how loyal they are to the passengers. Sometimes it happens by mistake, while in most cases, airlines overbook to show profits.

Compensation is Must if Not for Alternate Flight Options

Going by the latest rules, the 400% compensation is a must for every passenger who gets offloaded from the flight. Having said that, if the airline does not provide any alternate flight, then there’s no other option for the airline company. Furthermore, the alternate flight should be arranged within one hour of the original scheduled departure, otherwise, they will have to pay the compensation to the passenger.

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