Akasa Air was fined RS10 lakh by the aviation regulator DGCA for allegedly failing to promptly compensate some passengers who were turned away from the Bangalore airport in September.
Seven passengers who had scheduled a flight from Bangalore to Pune on September 6 were denied boarding, which is the subject of the DGCA's most recent action.
The source told an agency on Tuesday that the replacement aircraft had 9 non-operational seats, which prevented seven passengers from boarding the aircraft that was supposed to operate the flight was grounded due to damage from a foreign object.
Passengers were moved to a Indigo flight
Subsequently, the passengers were transferred to an Indigo flight that was scheduled to depart at 2240 hours, more than an hour later than the actual Akasa flight.
According to the aforementioned source, the passengers received no compensation, which was against DGCA regulations.
Compensation rules on boarding denial
When passengers are refused boarding and are not accommodated within an hour of the scheduled departure, airlines are required by DGCA regulations to compensate passengers with 200 per cent of the one-way basic fare plus fuel charge, up to a maximum of Rs 10,000, provided that a replacement flight is scheduled within 24 hours. This reimbursement was due to the seven passengers. Akasa Air did not, however, pay these travelers.
Consequently, the DRF was closed and a show-cause notice was issued by the DGCA. Afraid of punishment, the airline then started gathering passengers' bank account information for reimbursement.
Akasa Airlines recent incidents
The airline, which is more than two and a half years old, has been under regulatory scrutiny in recent months due to some alleged infractions. The carrier has referred to the accusations as unfounded. Earlier this month, some pilots had also raised concerns regarding training at the carrier.