Directorate General of Civil Aviation has imposed a penalty on Air India Express amounting to INR 10 lakhs for nonpayment of compensation to passengers in event of flight cancellations. As per the latest rules by the regulator airlines are bound to pay proper compensation to all passengers who are affected by flight cancellations or delays caused due to the errors or mis-management from the airline’s side.

As per the charter of passenger rights introduced in August 2019, airlines have to inform the passengers of any flight cancellations two weeks prior to scheduled departure. If the cancellation notice is sent less than two weeks but 24 hours before the scheduled departure, the airline has to arrange for an alternate flight or full refund as per the passenger’s demand.

As a part of its Annual Surveillance Programme (ASP) 2024 the DGCA had carried out an inspection of all scheduled domestic operators in June. The ASP is an audit related to facilities and compensation provided to passengers. During this inspection it came to DGCA’s notice that Air India Express has not complied with the provisions of CAR Section-3, Series M, Part IV.

This is in relation to compensation offered to passengers in terms of flight cancellations. Following this, a show cause notice was issued to Air India Express. 

The airline’s reply in response to DGCA’s questions revealed that the airline did not comply with the provisions of providing compensation to the passengers affected by flight cancellations. 

More details on the violations on the part of Air India Express could not be ascertained. 

Just last week, DGCA had imposed a fine on another TATA Group airlines – Air India of INR 90 lakhs for operating a flight with an unqualified crew member.