Flight Delays Compensation

National Air Carrier Association says 'no way' to monetary compensation for delays but ups accident payments.

The Ministry of Transport is currently drafting a memorandum on the responsibilities airlines owe to passengers affected by delays, and there are indications that monetary compensation is to be mandated, likely 200,000 rupiah for two hours.

The Indonesia National Air Carrier Association (INACA) has rejected these proposals, with INACA secretary general Tengku Burhanuddin saying:

If the Ministry includes monetary compensation then we don't agree, the current regulations on the matter are sufficient.

The current regulation, KM 25/2008, states that airlines can provide non-monetary compensation, such as free snacks while passengers sit out delays of over one hour. For cancellations passengers are to transferred to other flights or put up in hotels.

The precise details of such compensation vary from airline to airline, and depend to a large extent on whether the carrier is low cost or full service.

Accident Compensation

However although they are tight fisted in this area, INACA has recommended to its members that they increase compensation paid due to injury or death from plane accidents.

Tengku Burhanuddin said increases in accident compensation rates had not occurred in a long time and were thus overdue, and needed to be brought into line with international standards, which he said were $100,000 per person.

In rupiah that's 1 billion for death, and 1.2 billion for total incapacitation.

He warned airlines not to increase the insurance premiums that passengers paid in order to cover these extra compensation costs.

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