This article provides details of the new policy made by Ministry of Civil Aviation in August 2010 regarding compensation for cancelled flights.

As the winter season approaches, those who fly frequently dread all the cancelled flights, chaos, rudeness and crappiness of flying at such times. This article covers what are your rights as a passenger -- to put it in one line, they are pretty limited. However, it is important to know them so that you can exercise them whenever that specific situation arises.

NEXT: Can you get compensated for delayed flights?

Cancellation of flights or denial of boarding

Effective from August 15, 2010, the Ministry of Civil Aviation has brought out certain policy changes to ensure appropriate protection for the air travelers in case of flight cancellations. It is now the responsibility of airlines to inform the passenger of cancellations of flights as far in advance as possible of the scheduled time of departure.

In case the passenger has:

• Been denied boarding on a flight despite having a confirmed ticket, or
• Not been informed of a cancellation at least three hours in advance of the flight on which s/he was scheduled to travel, then the airline has to provide him compensation which includes:
• Cash compensation and
• A refund of the ticket price or alternative travel arrangements along with certain facilities at the airport
  However, the airline will not be required to compensate you where the reason for delay/cancellation is beyond its control.

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These are described in more detail below:

1. Refund or alternative travel arrangements:

• In addition to the financial compensation described above, airlines will also offer passengers one out of the following choices:
• An alternate or subsequent flight of the same airline or on another airline's flight. In case passenger takes this option, s/he is also entitled to free meals and refreshments as well the hotel accommodation, including transfers when necessary, if the waiting time till the next flight is over 24 hours; or
• Refund the ticket prices in the event passenger does not wish to travel on these alternative arrangements; or
• Provide them alternate travel opportunities at no additional cost (this could be in the form of vouchers, flying miles, coupons etc. that could be used to purchase tickets at a later date).

Example

Suppose you are booked on a flight from Delhi to Bangalore, which cost you Rs 6,000. In case this flight is cancelled AND you are not informed three hours in advance of the departure time AND the cancellation is not because of extraneous reasons like bad weather, terror alerts etc., you are entitled to compensation.

You will get Rs 4,000 as compensation (since the flight time is over two hours). In addition, you have the option to either get a refund of the money you paid for your ticket (Rs 6,000) or to take any subsequent flight or receive vouchers/flying miles/incentives etc. to travel on some another day.

In case you take a subsequent flight, you will be entitled to free use of facilities.

2. Cash compensation

The cash compensation element is as follows:

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Important points for passengers to remember:

Provide your contact details at the time of making your booking

In order to get compensation, it is required that at the time of booking ticket, passengers provide their valid contact information e.g. telephone number (landline or mobile), and/or fax number and/or e-mail id.

Choose your option in case of cancellation (i.e. refund or alternative travel) carefully

Once passenger has selected an option, s/he will not have the choice to switch to another form of compensation.

The airline will not be required to compensate you if you do not accept alternative travel arrangements proposed by the airline

Where the airline makes a reasonable proposal for alternate arrangements (for example putting the passenger on the next flight leaving in one hour),than he should not unreasonably demand a refund etc.

The airline will not be required to compensate you where the reason for cancellation is beyond its control

For instance, due to political instability, natural disaster, civil war, insurrection or riot, flood, explosion, government regulation or order affecting the aircraft, strikes and labour disputes causing cessation, slowdown or interruption of work or any other factors that are beyond the control of the airline.

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The airline is not required to compensate you if the reason for cancellation is clearly due to the fault of the Air Traffic Controller (ATC)

Airlines would also not be liable to pay any compensation in respect of cancellations clearly attributable to (ATC), meteorological conditions, security risks, or any other causes that are beyond the control of the airline but which affect their ability to operate flights on schedule.

Airline has to prove it contacted you

The burden of proving whether and when the passenger had been informed of the cancellation of the flight shall rest with the operating airline.

Mode of compensation

The compensation can be paid in any mode -- cash, bank transfer or even in form of a signed agreements like travel vouchers.

Measures for passenger redressal

It is the responsibility of the airline counter at the airport to first inform the passenger about the reasons for delay or cancellation of flight and provide them adequate compensation. If aggrieved passenger is not compensated, than s/he may complain to the internal grievances settling mechanism of the airlines. 

A nodal officer and the Appellate Authority are generally appointed for settling such passenger grievances. The complaint that is registered is also given a unique reference number.

Airline has to display information about their policies

It is the airlines duty to display the information and inform the passengers about their policies regarding compensation, refunds and the facilities that they will provide in the event of denied boardings, cancellations and delays. Such information should be included in ticketing documents as well the websites (under passenger Charter of Rights) of each airline.