Saturday, May 24, 2008

Off Loading Passengers to Cost Airlines

All Airlines overbook, but the nicer ones take care of the offloaded passengers, whereas other airlines simply shrug their shoulders. Not anymore, the DGCA is looking into rules that make it mandatory for airlines to compensate passengers in addition to a refund of the air ticket for bumping them off overbooked flights. Although the level of compensation is not finalized, there could be several slabs of the compensation package. You can expect the airlines to be very unhappy about this as this adds additional financial burden on an industry already walking on thin ice.

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