Beyond Refunds: Exploring Fair Compensation Models for Airline Passengers Affected by Disruptions

The Delhi High Court is scrutinizing how airlines compensate passengers beyond ticket refunds, particularly following widespread flight cancellations and operational disruptions experienced in early December of last year. While refunds for cancelled flights are being processed, the court is seeking detailed information on additional compensation measures for affected passengers.

Current Compensation Practices

Airlines typically offer several forms of compensation to passengers affected by flight disruptions:

  • Monetary Compensation: Airlines may offer direct cash payments based on the length of the delay and the distance of the flight. For instance, a bill proposed by some Democrat senators suggests payments of \$300 for delays exceeding three hours and \$600 for delays of six hours or more.
  • Vouchers and Travel Credits: Airlines like IndiGo have offered travel vouchers ranging from ₹5,000 to ₹10,000 as a "gesture of care" for passengers affected by significant disruptions. These vouchers can be used for future travel with the airline.
  • Alternative Flight Arrangements: Airlines are expected to provide replacement flights to get passengers to their destinations. If a passenger is part-way through their journey and prefers not to continue, they are entitled to a flight back to their original departure airport.
  • Reimbursement for Expenses: Airlines may cover necessary expenses incurred due to delays, such as meals, hotel accommodations, and transportation. The U.S. Department of Transportation (DOT) may require airlines to compensate passengers for such expenses, irrespective of the cause of the disruption.
  • Refunds for Ancillary Fees: Passengers are generally entitled to refunds for ancillary service fees, such as baggage fees, if the service isn't provided or if baggage is significantly delayed or lost.

Legal and Regulatory Framework

Several regulations and legal precedents govern passenger compensation:

  • DGCA Guidelines: The Directorate General of Civil Aviation (DGCA) in India has specific regulations outlining the facilities airlines must provide during cancellations and delays. These regulations form the basis for compensation eligibility.
  • Consumer Protection Act: Consumer forums are increasingly holding airlines accountable for deficient services, including in-flight amenities. Compensation can be awarded for "mental agony and harassment" resulting from substandard service.
  • EU regulations: Under EU law, passengers are entitled to compensation for delays of more than 3 hours.

IndiGo's Response and Current Status

IndiGo has stated that it has processed all refunds for flight cancellations that occurred between December 3rd and 5th of last year. The airline is also offering compensation, prioritizing those most severely affected by the disruptions, with some passengers being offered up to ₹10,000. The Delhi High Court has directed IndiGo to submit an affidavit detailing the measures taken to refund tickets and compensate passengers affected by the December disruptions, with a further hearing scheduled for February 25.

Challenges and Criticisms

Despite the stated compensation measures, some passengers have voiced frustration with the process, alleging denied benefits despite eligibility. Some passengers have also used social media to express their dissatisfaction with the refund and compensation procedures. Common complaints include flights not appearing on impacted lists and a perceived lack of responsiveness in addressing individual claims.

A recent case before the Delhi Consumer Forum, where Air India was ordered to pay ₹1.5 lakh in compensation to passengers for deficient in-flight services, highlights the growing emphasis on airline accountability and consumer rights. This ruling underscores that airlines have obligations under the Consumer Protection Act, 2019, particularly in maintaining basic in-flight amenities.


Written By
Hina Joshi is a political correspondent known for her nuanced understanding of leadership, governance, and public discourse. She approaches every story with fairness, curiosity, and precision. Hina’s insightful reporting reflects her commitment to truth and balanced journalism. She believes powerful narratives come from empathy as much as expertise.
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