Passengers downgraded by airlines – for instance from premium economy to economy class seats – will now get full refund and a free seat in the next available class, as per the new rules proposed by India’s civil aviation regulator, Directorate General of Civil Aviation (DGCA).

The aviation regulator said it observed several instances where passengers have been downgraded (to a lower class) at the time of check-in due to various reasons like unserviceable seats, change of aircraft and overbooking.

Amending aviation requirement

“In view of rapid expansion of air services within India and on international routes to / from India and with the increase in volume of passenger traffic, it has been noticed that sometimes airlines downgrade passengers (tickets).....In order to cater to such situations, the DGCA is in the process of amending its Civil Aviation Requirement... to protect the rights of air travellers affected,” it said in a statement.

The proposal will go through stakeholder consultation and the final regulation shall be published “and made applicable afterwards”, it further added.

Full service carriers like Vistara and Air India have higher cabins, like premium economy and business class. Air India is currently exploring the possibility of having premium economy seats in some of its aircraft.

India has two full-service carriers—Vistara and Air India—and they operate higher cabins such as premium economy, business class or first class.

The current set of rules by the DGCA does not mention what compensation an airline needs to give to a passenger affected by a downgraded ticket. In fact, they relate to denial of boarding and flight cancellations.

Current compensation provisions

For denied boarding, passengers are compensated depending on the situation.

In case an airline denies boarding against confirmed booking, then there is no compensation as long as the carrier arranges an alternate flight within one hour of the original scheduled departure. If the alternate flight is within 24 hours of the original departure, a passenger has to be paid 200 per cent of one way fare and fuel charge, with the amount capped at Rs 10,000. The compensation will be 400 per cent of one way fare plus fuel charge and the total amount will be limited at Rs 20,000 in case the alternate flight is after 24 hours of the original departure. In case a passenger does not opt for an alternate flight, then the airline concerned has to give full refund, and 400 per cent of one way fare plus fuel charge, with the amount cap at Rs 20,000.

If the airline has done an overbooking , it can ask for volunteers in exchange for benefits.

When the airline cancels a flight in less than 24 hours, compensations are capped at maximum of Rs 5000 – 10,000 depending on how many hours before the flying time such cancellations are made. 

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