Your Air India Express flight's been cancelled. What do law, verdicts and guidelines say?

Regardless of the actions taken by Air India Express, such as the dismissal of employees who went on mass leave without notice, it is ultimately the passengers who bear the brunt. Just recently, Vistara passengers faced disruptions when pilots and crew members failed to report to the airport. The situation with Air India Express is even more dire, as many passengers are finding out about flight cancellations only after completing security checks.

Since Tuesday night, approximately 15,000 passengers have already been affected by cancelled flights. Air India Express, which operates between 350 and 400 flights per day—comprising over 250 domestic and 120 international flights—is now reducing its daily flight schedule by about 40 until 13 May. On Thursday, 74 Air India Express flights stand cancelled.

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Ideally, when flights are cancelled, passengers shouldn’t be left in the dark or feeling stranded. It’s crucial for airlines and relevant authorities to swiftly communicate with affected travellers, providing clear information about the situation, alternative arrangements and steps for reimbursement or rescheduling.

However, the real question do airlines do enough? The following video from Delhi which was shared on X by a verified user only reflects the mental agony the passengers are going through, or rather leaving the hapless ground staff to face passenger ire in such a volatile situation.

Delhi Airport Kalesh (Air India Express cancelled 3 flights to Goa, Guwahati and Srinagar last moment and refused to provide any alternatives. So,Kalesh ensued) pic.twitter.com/TdIJlMhmTt

— Ghar Ke Kalesh (@gharkekalesh) May 8, 2024

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Where DGCA stands

The Directorate General of Civil Aviation has clearly stated in its guidelines where compensation will not be provided for cancellations and delays resulting from extraordinary circumstances beyond the airline’s control, including:

• Natural disasters

• Civil unrest or war

• Political instability

• Security threats

• Insurrection or riots, floods, explosions, etc.

• Government regulations impacting aircraft operations

• Strikes and labour disputes halting services

• Meteorological conditions

• Cancellations and delays directly caused by Air Traffic Control (ATC)

• Work slowdowns or interruptions, and other factors outside the airline’s control affecting flight operations.

However, none of the conditions seem to apply to Air India Express in the present circumstances. Mass sick leaves do not fulfill any of the conditions mentioned above.

Mass sick leaves also may not fall under section 2(q) of Industrial Disputes Act 1947 which states: “a strike is a cessation of work by a body of persons employed in an industry acting in combination; or a concerted refusal of any number of persons who are or have been so employed to continue to work or to accept employment; or a refusal under a common understanding of any number of such persons to continue to work or to accept employment.”

What will passengers do?

Whatever the reasons might be, airline passengers who have lawfully booked their tickets and which are hardly cheap these days cannot be left to fend for themselves.

The Passenger Charter issued by the Ministry of Civil Aviation explains the rights of affected passengers if the airline fails to arrange for an alternate flight scheduled to depart within one hour of the original scheduled departure time:

• Compensation equal to 200% of booked one-way basic fare plus airline fuel surcharge, capped at Rs 10,000, if the airline arranges an alternate flight scheduled to depart within 24 hours of the original scheduled departure.

• Compensation equal to 400% of booked one-way basic fare plus airline fuel surcharge, capped at Rs 20,000, if the airline arranges an alternate flight scheduled to depart more than 24 hours after the original scheduled departure.

• Refund of the full ticket value and compensation equal to 400% of booked one-way basic fare plus airline fuel surcharge, capped at Rs 20,000, if you choose not to opt for an alternate flight.

This is what Areness Managing Partner Sagar Aggarwal says about what passengers can do to claim their rights.

“On such circumstances where the airline is cancelling the flight on its own, DGCA has directed airlines to refund the entire booking amount to the passenger or alternatively, adjust the amount in any other reservation by the passenger with the same airline. The similar directions were for the first time witnessed at a large scale during the pandemic where the Indian aviation regulatory watchdog DGCA promptly enacted regulations to safeguard the interests of air passengers,” Aggarwal said.

“The DGCA has also enforced a grievance mechanism where a passenger may lodge a grievance to the Nodal officer and in case of inaction, the appellate officer may be followed up with. The grievance if remains unaddressed, the passenger may reach out to AirSewa,” he said.

“However, in cases where the passengers do not receive timely and full refunds/adjustments or in cases where the passenger shall suffer additional indirect loss due to higher pricing of similarly times alternative flight or probability of missing out on connected flight, the passenger may avail his remedies as a consumer under the Consumer Protection Act, 2019 whereby he can seek additional compensation for the indirect losses suffered,” Aggarwal said.

“Considering that the present airline reservation industry is largely dominated by e-commerce and private agents/ intermediaries, there is a high likelihood that certain passengers may still feel at a loss even after receiving a full refund. For such customers, the ideal remedy is action under CPA only,” he said.

Indirect losses are the losses arising out of missing connected flights, hotel bookings and other ancillary losses arising out of flight cancellations.

“Witnessing the present turmoil, the airline industry is facing frequent instances of passengers being struck in between due to strikes/leaves and employment issues with their respective airline companies, it is highly recommended that the DGCA passes civil aviation regulations for managing their workforce,” Aggarwal said.

Legal remedies for passengers not unheard of

According to a report by The Better India, in January 2019, a consumer court in Mumbai ruled in favour of Jayesh Pandya, a resident of Vile Parle, directing GoAir to compensate him with a sum slightly exceeding Rs 98,000. Pandya had procured tickets amounting to Rs 50,000 for 25 guests slated to attend his daughter’s wedding, scheduled for 17 February, 2015. However, the airline abruptly cancelled the flight, causing inconvenience to the passengers.

Last October, a consumer court in Bengaluru upheld the rights of passengers amid flight cancellations triggered by pandemic circumstances. The verdict highlights airlines’ responsibility to provide full refunds of ticket fares to impacted passengers.

In October 2020, the Supreme Court issued a directive stating that airlines must refund the money collected from tickets cancelled due to the lockdown imposed amid the coronavirus pandemic without levying any cancellation charges. The three-judge Bench, led by Justice Ashok Bhushan endorsed the recommendations of the DGCA regarding the refund of ticket fares. Additionally, the court approved a credit shell scheme, which was valid until 31 March, 2021.

According to Reuters, in August, the Australian Competition and Consumer Commission (ACCC) filed a lawsuit against the Australian flagship carrier, alleging that it sold tickets for numerous flights even after their cancellation, potentially exposing the airline to substantial fines. However, this week, the airline settled with the ACCC. Under the agreement, it may face a civil penalty of A$100 million ($66 million) for the flight cancellation incident, pending approval by the Federal Court of Australia, as stated in a released statement.

Why legal remedies matter for passengers

Passengers require legal remedies for cancelled flights to safeguard their rights, ensure fair treatment and seek compensation for the inconvenience and financial losses incurred. Legal remedies serve as a deterrent for airlines to cancel flights arbitrarily, provide a means for passengers to recover expenses and establish a framework for resolving disputes. By holding airlines accountable and providing avenues for redress, legal remedies contribute to a more equitable and reliable air travel system where passengers are adequately protected and supported in the event of flight disruptions.