The recent operational collapse
at India's largest carrier, IndiGo, exposed not just severe management failure
but a critical void in India's passenger protection laws, drawing immediate and
damning comparisons to the robust EU model. The crisis, marked by thousands of
cancellations and delays, left passengers stranded at airports nationwide,
forcing the government to intervene as the situation spiraled into a
humanitarian issue.
The Monopoly and the Meltdown
The heart of the crisis lies in
the airline's apparent failure to prepare for the Directorate General of Civil
Aviation’s (DGCA) updated Flight Duty Time Limitation (FDTL) rules, which
mandated an increase in the weekly rest period for pilots and crew to 48 hours.
Though the new rules were notified well in advance, the airline, commanding
nearly two-thirds of the domestic market, suffered a catastrophic crew
scheduling failure that began around December 2nd.
Advocate Adarsh Varma, speaking
on the matter, minced no words in blaming the air carrier and the existing
market structure. He argued that with IndiGo holding 64% of the market share,
the industry is effectively operating with a "one-sided monopoly".
"They had two years' time to
do this. Why didn't you increase your crew?" Varma stated, adding that
IndiGo had clearly "violated the DGCA guidelines". He further
highlighted the consequence of this market dominance: the lack of parallel and
competitive alternative flights meant stranded travellers were charged inflated
fares, sometimes paying "up to 500%" more for a ticket on a rival
airline. According to Varma, this non-compliance should incur a fine of
"more than ₹10 lakh".
India's Weak Relief vs. The EU
Benchmark
While IndiGo attempted damage
control by issuing over ₹1,396 crore in refunds and announcing over ₹500 crore
in total compensation, including ₹10,000 travel vouchers for "severely
affected customers" the relief pales in comparison to the international
standards codified in the European Union.
The benchmark for passenger
rights is set by Regulation (EC) No 261/2004, which establishes common rules on
compensation and assistance for passengers in the EU. This regulation, unlike
India's current DGCA framework, offers robust, fixed compensation based on
flight distance, in addition to the right to care (meals, accommodation,
alternate flights)
a)Flights 1,500 km or less:
Up to €250 (approx. ₹22,000).
b)Flights 1,500 km to 3,500
km: Up to €400 (approx. ₹35,000).
c)Flights over 3,500 km: Up
to €600 (approx. ₹53,000).
The current Indian compensation
mechanisms are significantly lower, estimated at around €230 and are considered
"minimum statutory relief". Furthermore, India's system often fails
to cover passengers for non-refundable bookings, missed business opportunities,
or emotional distress, issues which are routinely compensated in consumer
courts following major disruptions.
The comparison is stark: in a
similar crisis, one European airline was forced to pay €25 million (approx.
₹188 crore) in compensation under EU 261/2004, demonstrating the potent
deterrent effect of comprehensive passenger legislation. For India, the IndiGo
crisis has become the clearest call yet for adopting EU style protection laws
to ensure airlines are held fully accountable.
Source Links:
1) Adv Adarsh Varma
Interview: http://www.youtube.com/watch?v=N1TkIfzOqKs
2) EU Regulation 261/2004
Information: https://airadvisor.com/en/eu-261-compensation
3) Image source: News Nation
(News State Channel)
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