High compensation costs kept IndiGos international flights flying amid domestic chaos
NEW DELHI: Indias largest domestic airline chose profitability over the suffering of lakhs of its domestic passengers during its recent operational crisis. From December 1 to 9, IndiGo triggered a massive aviation disruption by cancelling nearly 4,290 domestic flights, impacting passengers across the country. The startling reality, however, is that despite citing multiple issues for the meltdown, the airline cancelled only 60 international flights during the nine-day period. The primary reason was the significantly higher compensation payable to international passengers compared to domestic flyers. Data shared by IndiGo shows that international cancellations accounted for just 2% of the nearly 2,700 international flights operated during the period. The airline operates around 300 international flights daily, connecting 44 destinations, an official said. The 2% cancellations were for reboot (crew recovery). These were flights with basic loads (low passenger counts) to ensure customer inconvenience was minimised, the official added. Notably, even on December 5, when IndiGo announced the unprecedented cancellation of all its flights from Delhis Indira Gandhi International Airport, international operations continued. As the crisis raged through the first week of December, a senior airline executive told The New Indian Express, When such a severe operational crisis is unfolding, the airline somehow manages to keep most of its international operations afloat. That is quite a mystery! 'Lack of 65 pilots?': Revisiting the IndiGo crisis and looking at the questions being raised The explanation lies in commercial considerations. The minimum compensation payable for international flight cancellations is nearly 13 times higher than that for domestic passengers. Additionally, airlines must provide hotel accommodation to international flyers who need to stay overnight, and ticket refunds result in significantly higher per-flight losses. For domestic cancellations, IndiGo announced compensation ranging from Rs 5,000 to Rs 10,000 per ticket, depending on the timing of the cancellation. Passengers informed at the last minute are entitled to compensation at the higher end of the range. In the case of an international flight cancelled from India, the return leg also stands cancelled. Since this often involves a foreign jurisdiction, international norms govern compensation for the departing flight. Under European Union passenger rights regulations, cancellations can attract compensation of up to 600 euros or 520 pounds, approximately Rs 64,000 per ticket, applicable to both EU and non-EU airlines. Exceptions apply only in cases such as bad weather or security threats. These rules do not apply to US-bound flights, where consumer protection laws are less stringent. When asked about the compensation paid for international flight cancellations, IndiGo declined to share specific figures. We are governed by Indian and international rules for claims, and we abide by them, the airline said. Caught in a perfect storm: How IndiGo flew into an avoidable crisis
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