Alliance Air pays over ₹16 lakh to 33 passengers after consumer court issues NBW over flight cancellation

Over two years after abruptly cancelling a Hyderabad–Mysore flight, Alliance Air has cleared more than ₹16 lakh in compensation to 33 passengers following the issuance of non-bailable warrants by a Hyderabad consumer commission [Radha Devi Mandhana vs M/s The Alliance Aviation Ltd].

The District Consumer Disputes Redressal Commission-II, Hyderabad, comprising President Vakkanti Narasimha Rao and Members P V T R Jawahar Babu and Suma Vala, terminated execution proceedings on October 14 after recording satisfaction of the decree.

The Bench also recalled the non-bailable warrants (NBWs) previously issued against airline officials.

The dispute arose from an incident on June 2, 2022, when a 33-member family group, including senior citizens and infants, arrived at Hyderabad's Rajiv Gandhi International Airport to board a flight to Mysore.

Less than three hours before departure, the airline sent an SMS notifying them of the flight's cancellation.

Left stranded without assistance or refreshments, the passengers were offered alternate seats only for a few members of the group, which they could not take.

Alliance Air then issued a written communication advising them to cancel their trip entirely. The cancellation resulted in a forfeiture of ₹2.70 lakh spent on non-refundable hotel stays in Ooty and Mudumalai, alongside pre-booked cab rentals.

By an order dated July 11, 2024, the Commission held Alliance Air guilty of gross deficiency in service and non-compliance with Directorate General of Civil Aviation (DGCA) passenger care norms.

The carrier was directed to pay ₹2.70 lakh towards actual financial losses, ₹9.90 lakh in aggregate compensation (₹30,000 per passenger), and ₹20,000 in litigation costs within 45 days, failing which the awarded amount would attract 12% annual interest.

The complaint against Air India was dismissed as it was a distinct corporate entity after its privatisation.

When the airline failed to satisfy the award, the consumers filed an execution plea. On August 25 this year, the Commission dismissed the airline’s Section 317 CrPC application seeking exemption from personal appearance, observed continued non-compliance and issued NBWs against the airline.

Following the coercive order, the carrier delivered a demand draft covering the entire decretal sum along with accrued default interest, taking the total payout past ₹16 lakh.

Closing the execution matter, the Commission noted:

"In view of the compliance of the order in toto and a memo filed with regard to the full satisfaction... as the order was complied and as per the not pressed endorsement made and full satisfaction memo filed this E.A. is terminated the NBW's issued is recalled."

Advocate Dinesh K Gilda appeared for the complainants.