The recent IndiGo operational crisis has left thousands of passengers stranded across India. There have been more than 1,200 flight cancellations in November alone. While the airline struggles with new Flight Duty Time Limitation rules, it remains crucial to understand what the airline is legally obligated to provide.
The Directorate General of Civil Aviation (DGCA) has established binding rules through Civil Aviation Requirement (CAR) Section 3, Series M, Part IV that airlines must fulfil. These regulations apply to all scheduled and non-scheduled operators in India. Every airline operating in India must comply with these regulations, and violations can result in penalties, fines, and enforcement actions by the aviation regulator. Foreign carriers may follow their own regulations or CAR for certain heads of compensation.
Immediate Obligations During Cancellations
When a flight is cancelled, airlines are legally required to offer either:
- an alternate flight, or
- a full refund.
This choice rests entirely with the passenger. In situations where the passenger has already reported at the airport before learning of the cancellation, the airline must additionally provide meals and refreshments during the waiting period as per CAR para 3.7.1(a), irrespective of how long the delay lasts.
Compensation Based on Notification Timeline
The airline’s financial liability and obligations depend upon when it has informed passengers about the cancellation. If the airline notifies two weeks or more before the scheduled departure, it must provide either an alternate flight or a full refund, but no additional monetary compensation is required under the DGCA rules.
However, if the airline notifies less than two weeks but more than 24 hours before departure, the situation changes. The airline must still provide an alternate flight or full refund, but now monetary compensation may be applicable according to CAR 3.3.2.
Compensation Structure
For cancellations notified less than two weeks before departure, compensation depends on the flight’s block time and is subject to a cap:
- Up to and including 1 hour block time: Rs.5,000 or booked one-way basic fare plus airline fuel charge, whichever is lower
- More than 1 hour and up to 2 hours: Rs.7,500 or booked one-way basic fare plus airline fuel charge, whichever is lower
- More than 2 hours: Rs.10,000 or booked one-way basic fare plus airline fuel charge, whichever is lower
Extraordinary Circumstances: Compensation is not payable in extraordinary circumstances beyond the airline’s control, such as severe weather, air traffic control restrictions, political unrest, or security risks. However, meals, refreshments, and refund options may still be owed even where cash compensation is not applicable.
Contact Information Requirement: Under CAR 3.3.3, no financial compensation is payable if the passenger did not provide adequate contact information (email or phone number) at the time of booking, even if the flight is cancelled. This is why airlines emphasize the importance of providing correct contact details.
Last-Minute Cancellations (Less than 24 Hours’ Notice)
The most onerous obligations arise when the airline notifies less than 24 hours before departure. In this scenario, the airline must:
- Provide an alternate flight at no additional cost
- Provide free hotel accommodation if an overnight stay becomes necessary due to the cancellation
- Provide all meals and refreshments during the waiting period
- Arrange transfers between the airport and hotel
- Pay monetary compensation as per the structure above (Rs.5,000 to Rs.10,000 depending on block time and fare, subject to the “whichever is lower” cap)
Airline Liability for Flight Delays
The CAR framework for delays operates on multiple thresholds based on block time and total delay duration.
Short and Medium Delays: Meals and Refreshments
If a passenger has checked in on time and the airline expects a delay beyond the following thresholds, the airline must provide meals and refreshments under CAR 3.7.1(a):
- 2 hours: for flights with block time up to 2.5 hours
- 3 hours: for flights with block time between 2.5 to 5 hours
- 4 hours: for flights with block time above 5 hours
Long Delays: Change of Flight or Refund (6+ Hours for Domestic Flights)
For domestic flights, when a delay is expected to exceed 6 hours and this is communicated more than 24 hours before departure, the airline must offer passengers the choice of either:
- An alternate flight within 6 hours of the originally scheduled departure time, or
- A full refund
Even if the airline offers an alternate flight, the passenger retains the right to decline it and request a refund instead. This provision under CAR 3.4.2 is specifically framed for domestic flights.
Overnight Delays
Airlines must provide hotel accommodation (with airport transfers) in addition to meals and refreshments when:
- The total delay exceeds 24 hours, or
- The flight is scheduled between 8 PM and 3 AM and is delayed by more than 6 hours
Airlines are bound to arrange and pay for hotel transfers and provide meals according to standard delay provisions during these extended delays.
Baggage Liability
Baggage liability in India is governed by the Carriage by Air Act, 1972, which implements the Montreal Convention into Indian domestic law. This creates a comprehensive framework for how airlines must compensate passengers when baggage is lost, delayed, or damaged.
Domestic Flight Baggage Compensation
For domestic travel within India, statutory baggage liability for loss or damage is generally capped at Rs.20,000 per passenger. Many airlines apply a per-kilogram rate (often around Rs.300 to Rs.350 per kilogram) up to this maximum cap under their Conditions of Carriage.
Baggage is officially declared “lost” after 21 days have passed since filing the Property Irregularity Report (PIR) at the airport. To claim this compensation, passengers must provide an itemized list of the contents of their baggage along with proof of purchase for valuable items where possible.
Delayed Baggage: Compensation for delayed baggage is usually discretionary and often lower, but still subject to the same overall cap of Rs.20,000. Airlines typically provide interim compensation of Rs.3,000 to Rs.10,000 for essential items that passengers might need to purchase while waiting for their baggage. Keep all receipts for items you buy, and file a Property Irregularity Report immediately upon discovering the delay.
Damaged Baggage: For damaged baggage, airlines apply similar liability limits—typically the per-kilogram rate (around Rs.300 to Rs.350 per kg) up to the Rs.20,000 passenger cap. The airline may choose either to repair the damaged baggage or provide a replacement. However, normal wear and tear such as minor scratches and scuffs that occur during typical handling are not covered under this compensation framework.
International Flight Baggage Protection
For international travel, the Montreal Convention provides enhanced protection compared to domestic standards. Airlines are liable for up to 1,288 Special Drawing Rights (SDR) per passenger (with periodic revisions—a further revision to 1,519 SDR is taking effect internationally). Given exchange rate volatility, this currently translates to approximately Rs.1,25,000 to Rs.1,50,000, though the exact amount depends on current SDR exchange rates. This limit applies whether the baggage is lost, delayed, or damaged.
Time Limits for Filing Claims
- Damaged baggage: Notify the airline in writing within 7 days of receiving your baggage
- Delayed baggage: File a complaint within 21 days of receiving your baggage
- Lost baggage: File the Property Irregularity Report immediately at the airport upon discovering the loss
Enforcement and Remedies
When airlines fail to meet their obligations, passengers have recourse through a structured escalation process:
- Complain to the airline first: Under CAR 3.8.1, passengers must first raise their complaint with the airline’s customer service or nodal officer
- Escalate via AirSewa: If the airline’s response is unsatisfactory, passengers can escalate their complaint through the AirSewa portal (airsewa.gov.in) as per CAR 3.8.2, which is monitored by DGCA
- Consumer forums and civil courts: If the complaint remains unresolved, passengers can approach consumer dispute redressal forums or file civil suits for compensation and damages
Frequently Asked Questions
Q1: What should I do immediately if my flight is cancelled at the airport?
Approach the airline’s customer service desk and clearly state whether you want an alternate flight or a full refund. Ensure you receive meal vouchers or refreshments while waiting, as the airline is legally obligated to provide these under CAR 3.7.1(a). Document everything, including the cancellation notice, communication with airline staff, and any expenses you incur due to the cancellation.
Q2: Can I get both a refund and compensation for a last-minute cancellation?
No. If you accept the refund, you forfeit the alternate flight option, but you are still entitled to monetary compensation if the airline cancelled with less than two weeks’ notice. For cancellations notified less than 24 hours before departure, you can claim compensation of Rs.5,000 to Rs.10,000 (subject to the “whichever is lower” rule with basic fare plus fuel charges) in addition to either the refund or alternate flight, plus hotel accommodation and meals if applicable. Note that compensation is not payable in extraordinary circumstances such as severe weather or ATC restrictions.
Q3: How do I calculate the compensation amount I’m entitled to?
Compensation depends on your flight’s block time (scheduled departure to arrival time) under CAR 3.3.2:
- Up to and including 1 hour: Rs.5,000 or basic fare + fuel charge, whichever is lower
- More than 1 hour up to 2 hours: Rs.7,500 or basic fare + fuel charge, whichever is lower
- More than 2 hours: Rs.10,000 or basic fare + fuel charge, whichever is lower
This applies to cancellations notified less than two weeks before departure. The “whichever is lower” cap means that if your actual fare was lower than the rupee amount, you receive the fare amount instead.
Q4: What if the airline offers me a flight the next day but I need to travel urgently?
You have the right to refuse the alternate flight and request a full refund instead. If the cancellation was notified less than 24 hours before departure, you are also entitled to hotel accommodation, meals, airport transfers, and monetary compensation (subject to the caps described above). The airline cannot force you to accept an alternate flight that doesn’t suit your needs.
Q5: My baggage was delayed by three days. What compensation can I claim?
For domestic flights, compensation for delayed baggage is subject to the Rs.20,000 per passenger statutory cap, with many airlines applying per-kilogram rates (typically Rs.300 to Rs.350 per kg). Additionally, airlines typically provide interim compensation of Rs.3,000 to Rs.10,000 for essential items you need to purchase while waiting. Keep all receipts for items you buy, and file a Property Irregularity Report immediately upon discovering the delay.
Q6: How long do I have to file a claim for lost or damaged baggage?
For damaged baggage, you must notify the airline in writing within 7 days of receiving your baggage. For delayed baggage, you must file a complaint within 21 days of receiving it. For lost baggage, file the Property Irregularity Report immediately at the airport. Baggage is officially declared lost after 21 days, at which point you can claim compensation of up to Rs.20,000 for domestic flights.
Q7: Does the airline have to provide hotel accommodation for all overnight delays?
Not necessarily. Hotel accommodation is mandatory when either (a) the total delay exceeds 24 hours, or (b) flights scheduled between 8 PM and 3 AM are delayed by more than 6 hours. For other flights, hotel accommodation is mandatory only if the delay leads to a cancellation and the cancellation was notified less than 24 hours before departure.
Conclusion
The IndiGo disruption has exposed the limitations of India’s current airline liability framework, not because the law lacks clarity, but because its enforcement remains inconsistent and largely reactive. CAR provisions impose clear and mandatory responsibilities on airlines, including alternate flights, refunds, hotel stays, meals, transfers, and compensation. The Carriage by Air Act provides a parallel statutory basis for baggage-related claims. Without stronger enforcement and passenger awareness, these protections risk operating more as aspirational guidelines than real safeguards. The crisis should serve as a catalyst for revisiting the country’s aviation consumer protection regime. Ensuring that passengers’ statutory rights translate into meaningful remedies requires stronger supervision, clearer processes, and proactive enforcement.
