After long last, IndiGo offers compensation to “some” affected people from the meltdown

When it comes to the response to IndiGo’s epic meltdown last week, the airline has lawyered up. The apologies are light and lack empathy, unfortunately. For instance, here is Pieter Elbers’ apology.

And here is the video published by the IndiGo Chairman of the Board,

While the intent might be sincere, it is clear that the airline has been advised by its lawyers not to use certain words, perhaps to protect themselves from particular interpretations of the law, in which case the “apology” appears non-sincere.

IndiGo finally comes around to talking compensation

As I indicated in my earlier post, IndiGo was found to have fallen short of the standard of care it was supposed to provide customers. After the heat grew on the airline from the Indian Government and its regulator, the DGCA, IndiGo has finally offered some amount, with stringent conditions of its own. IndiGo said,

IndiGo regrettably acknowledges that part of our customers travelling on December 3/4/5 were stranded for many hours at certain airports and number of them were severely impacted due to congestion. We will offer travel vouchers worth INR 10,000 to such severely impacted customers. These travel vouchers can be used for any future IndiGo journey for the next 12 months.

This compensation is in addition to the commitment under the existing Government guidelines, as per which, IndiGo will provide compensation of INR 5,000 to INR 10,000, depending on the block time of the flight, to those customers whose flights were cancelled within 24 hours of departure time.

Here is the complete text of IndiGo’s announcement.

a blue and white text on a blue background

The Charter of Passenger Rights stipulates the following compensation in the case where “you are not informed as per the provisions, or have missed the connecting flight booked on the same ticket number.” Here are the passenger rights, 

The airline shall either provide an alternate flight as acceptable by you or provide compensation, in addition to the full refund, as follows:
A. For flights having a block time of up to and including 1 hour, compensation of INR 5,000 or the booked one-way basic fare plus airline fuel charge, whichever is less
B. For flights having a block time of more than 1 hour and up to and including 2 hours, compensation of INR 7,500 or the booked one-way basic fare plus airline fuel charge, whichever is less
C. For flights having a block time of more than 2 hours, compensation of INR 10,000 or the booked one-way basic fare plus airline fuel charge, whichever is less

Why is this not enough?

The problem with this situation is that IndiGo is pawning off the extreme costs borne by customers as its own problem. A 10,000 INR Voucher, again, is a smart solution for IndiGo because either you use it or you lose it. So that allows IndiGo to account for it as a discount or something equivalent, rather than a cash outlay from IndiGo’s side. The compensation being paid is only for passengers stuck between December 3 and 5, not for those after that date, even though they might be in the same situation with IndiGo. Remember, it took four more days for IndiGo actually to get back on track and scale up to 18-1900 flights a day again. And while IndiGo had announced cancellations up to 72 hours in advance, that would not have been the case for those who departed on December 6 or 7.

The announcement is also light on details, such as whether this is a one-time use voucher or can be booked across multiple trips. Also,  can people combine their vouchers with their family members or something?

Also, who is paying for all the costs borne by customers at the airport, or for hotels, and so on? IndiGo was unable to organise rooms or food for so many people, after all, and people bought those expensive coffees and sandwiches at the airports for consumption in the meantime. There needs to be reimbursement for all expenses the customers have borne, as well as out-of-pocket expenses, due to IndiGo’s inability to operate flights on time.

And while we are at it, nothing for the contractors of IndiGo and their own frontline staff who stood their ground for hours and bore the brunt of customer anger?

I want to give IndiGo the benefit of the doubt, and I hope they have something more in store; this is just a partial announcement. We’ll see.

Bottomline

IndiGo has finally talked about compensation and is offering INR 10,000 compensation vouchers per passenger, apart from the amount IndiGo is due to pay as per the existing statute of the Government of India. The airline has not yet offered to cover the tab for all the issues and expenses customers faced due to delays and cancellations.

What do you make of IndiGo’s offer for compensation? Enough? Or Not? Thoughts in the comments, please. 


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About Ajay

Ajay Awtaney is the Founder and Editor of Live From A Lounge (LFAL), a pioneering digital platform renowned for publishing news and views about aviation, hotels, passenger experience, loyalty programs, travel trends and frequent travel tips for the Global Indian. He is considered the Indian authority on business travel, luxury travel, frequent flyer miles, loyalty credit cards and travel for Indians around the globe. Ajay is a frequent contributor and commentator on the media as well, including ET Now, BBC, CNBC TV18, NDTV, Conde Nast Traveller and many other outlets.

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