Lok Sabha Question No. 253 (STARRED), answered on 2024-08-08
Subject: Compensation for Cancellation of Flights
Ministry: CIVIL AVIATION
Asked by: Shri Matheswaran V S

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION

## LOK SABHA

STARRED QUESTION NO. : 253

(To be answered on the 8 th  August 2024)

## COMPENSATION FOR CANCELLATION OF FLIGHTS

## *253. SHRI MATHESWARAN V S

Will the Minister of CIVIL AVIATION

Minister of CIVIL AVIATION

be pleased to state:-

- (a) the stage of expansion of Salem Airport in Tamil Nadu and the timeline set for completion of its expansion;
- (b) whether the Government proposes to increase the compensation paid to the customers who are affected due to cancellation of flights and fall under category of the DGCA guidelines CAR 3.3.2 clause C and if so, the details thereof;
- (c) the basis on which the criteria is fixed for the compensation of rupees 10,000 to the customers affected due to cancellation of flights;
- (d) the timeline fixed for the airline operators to comply with the DGCA guidelines CAR 3.3.2 clause C; and
- (e) whether it is true that there is no differentiation in awarding compensation between economy, premium economy and business class passengers, as business class tickets cost more than Rs. 25,000 approximately and if so, the details thereof?

## ANSWER

(Shri Kinjarapu Rammohan Naidu)

- (a) to (e) : A statement is laid on the table of the House.

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STATEMENT REFERRED TO IN REPLY TO PARTS (A) TO (E) IN RESPECT OF LOK SABHA STARRED QUESTION NO. 253 FOR REPLY ON 08.08.2024 REGARDING 'COMPENSATION FOR CANCELLATION

OF FLIGHTS' BY SHRI MATHESWARAN V S.

- (a):    Airports Authority of India (AAI)  has planned to upgrade Salem airport for Instrument Flight Rules (IFR) operations of ATR-72 type of aircraft under phase1. State Government has been requested to provide 177 acres of land for this purpose.
- (b):No Sir, at present no such revision in the exiting provisions of CAR is proposed.
- (c): In order to ensure appropriate protection for the air travellers in case of flight disruptions and, in particular, denied boarding, flight cancellations and delays without due notice to the passengers booked on the flight(s), DGCA issue/revise CAR under the provisions of Rule 133 A of the Aircraft Rules, 1937 after incorporating the viable comments/suggestions received from the stakeholders to protect the interest of passengers and also the stake holders in line with global practice.
- (d): As per the aforementioned CAR, if the passenger is not informed of the cancellation at least before 24 hours of the scheduled flight operation, the airlines shall either provide an alternate flight or provide compensation in addition to the full refund of air ticket in accordance with CAR Section 3, Series M, Part II titled 'Refund of Airline Tickets to Passengers of Public Transport Undertakings' according to which such refunds are processed adhering to the following timeline:
- (i) In case of credit card payments, refund shall be made by the airlines within seven days of the cancellation to the account of credit cardholder.
- (ii) In case of cash transactions, refund shall be made immediately by the airlines office from where the ticket was purchased.

(iii) In case of purchase of ticket through travel agent/portal, onus of refund shall lie with the airlines as agents are their appointed representatives. The airlines shall ensure that the refund process is completed within 30 working days.

- (e) As per, CAR Section 3, Series M, Part IV  the airlines shall either provide alternate flight as acceptable to the passenger or provide compensation in addition to the full refund of air ticket in accordance with the following provisions:
- (i) INR 5,000 or booked one-way basic fare plus airline fuel charge, whichever is less for flights having a block time of up to and including 01 hour.
- (ii)  INR  7,500  or  booked  one-way  basic  fare  plus  airline  fuel  charge, whichever is less for flights having block time of more than 01 hour and up to and including 02 hours.

(iii)  INR  10,000  or  booked  one-way basic fare plus airline fuel charge, whichever is less for flights having a block time of more than 02 hours. Further, airline shall not be obliged to compensate in cases where the cancellation & delay is caused by a force majeure event i.e. extraordinary circumstance(s) beyond the control of the airline. As the compensation provided is over and above the respective refunds, it is

uniformly provided irrespective of the class of the ticket booked.

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