Travel has its Compensations

(8/26/2011)

Indonesian airlines are now being compelled by the government to bring compensation paid to disappointed passengers and in the event of catastrophic events more into line with international airline practice.

A Transportation Ministry decree signed on August 8, 2011, provides for a number of changes that will impact on those flying in Indonesia effective November 8, 2011.

The traveling public can look to the following changes:

• Airlines operating more than 4 hours behind schedule will be obliged to pay RP. 300,00 (US$34) per passenger.

• Airlines rerouting passengers via an unscheduled stop must pay Rp. 150,000 (US$17) to each passenger.

• Passengers whose luggage is lost by the airline will be entitled to be paid Rp. 200,000 (US$23) per kilogram to a maximum of Rp. 4 million (US$455).

• Cargo lost by an airline must be compensated at Rp. 100,000 (US$11.40) per kilogram.

• Cargo damaged by an airline must be compensated at Rp. 50,000 (US$5.70) per kilogram.

• Catastrophic events resulting in a passenger fatality resulting from the airline’s negligence will be compensated to a minimum amount of Rp.1.25 billion (US$142,000).

The Indonesian National Air Carrier Association (INACA) while accepting that the changes in the rule are a natural evolution in improving service to the public are asking for more than 3 months to put procedures and insurance in place to meet the new requirements imposed by the government .