Air India loses Rs 16 crore in compensations over delays, cancellation in 2 years
The airline also paid Rs 9.93 crore in terms of compensation to customers for delays beyond 2 hours over the same period.
Air India has lost over Rs 16 crore from July 2014 to March 2016 due to delays and cancellation of flights.
Air India has paid over Rs 6 crore in terms of compensation to customers for cancellations in the 2-year period. The national airliner has paid Rs 6.16 crore, which is the maximum among airline operators in India, on account of denied boarding and cancellations from July 2014 to March 2016. The airline also paid Rs 9.93 crore in terms of compensation to customers for delays beyond 2 hours over the same period. This equals a total loss of Rs 16.09 crore for the airline.
Dr Mahesh Sharma Minister of State (MoS) for the Ministry of Civil Aviation gave details in a response to questions in Lok Sabha regarding data on the number of flight cancellations and delays and the costs incurred by Air India and other Indian carriers.
Jet Airways was next, but the loss due to compensation was much less in comparison. Jet Airways and Jet Lite compensated Rs 1.28 crore for cancellations over the 2 year period.
The total amount spent by airlines for cancellations during the same period is Rs 9.41 crore. While delays cost airlines Rs 11.05 crore and lost Rs 8.7 crore on account of denying boarding of customers.
Apart from this, a total of 5 flights were delayed on account of Air India's cabin crew failing pre-flight medical tests from March 2013 to April 2016.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.