INDIA BUSINESS WORLD - APRIL 2007
The Month that was ...

AIRLINES GET RELIEF FROM DELAY PENALTY

THE National Consumer Disputes Redressal Commission has stayed the order passed by the redressal commission in Delhi directing all airlines operating from Delhi to pay compensation in case of a delay of two hours or more in departure or arrival of flights. The commission had ruled that a minimum compensation of Rs 10,000 has to be paid to every passenger in case of a domestic flight and Rs 20,000 in case of an international flight.

The state redressal commission had said that except for delays on account of bad weather, act of nature, poor visibility, tyre burst or bird hits, every other type fell within the category of deficiency of service.

A bench headed by justice KS Gupta in its interim order said, "The operation of the order passed by State Commission shall remain stayed".

The National Consumer Disputes Redressal Commission, while staying the order, admitted the petition moved by Alliance Air and Indian Airlines seeking revision of the order passed by the state commission.

Advocate Lalit Bhasin, appearing for the petitioner service providers, said that the delay in the flights is on account of many factors which may be beyond the control of service providers. Such delays could not be treated as deficiency in service.

The delays in departure or arrival of the flights may be on account of technical snags, ATC clearance, closure of runways due to repairs and maintenance, etc. The imposition of penalty for such types of delay is arbitrary, said Mr Bhasin.The state commission had countered that the non maintenance or poor maintenance of carrier itself amounts to deficiency of service as it is the duty of service providers to see that these are always kept in perfect order in order to observe and adhere to timing of the flights.

The state commission had imposed penalty on service providers by stating that late running and cancellation of flights, offloading of consumers with confirmed status of tickets, traffic congestion in air and on the ground was becoming the order of day. There are large number of consumers who suffer enormously in terms of time, mental agony, harassment and physical sufferings and discomfort by missing professional or business meetings and connecting flights, it said.