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Delayed Compensation

Indonesian Ministry of Transportation May Postpone and Revise Promised Compensation Package for Passengers Affected by Delayed and Cancelled Flights.

(10/23/2011) The government is considering delaying the introduction of new regulations providing mandatory compensations Indonesian airlines must pay passengers when flights are delayed or canceled, baggage or cargo lost or damaged, or passengers are injured or killed.

According to Bisnis Indonesia, the Ministry of Transportation is planning on delaying the new compensation scheme set for introduction in mid-November 2011 [See: The Compensations of Air Travel]  due to various objections from Indonesian air carriers.

The director of air transport at the Directorate General of Civil Aviation, Edward A. Silooy, said: “many (airlines) are rejecting the implementation (of the new rules) because of practical difficulties. Because of this, the rules may be revised.”

Among the airlines’ chief complaints cited in calling for the revision and delaying the introduction of the new rules are limitations by existing insurance policies that cannot be changed until the current policies expire and practical difficulties of compensating passengers in remote regions of the country where electronic bank services are limited.

The Indonesian National Air Carriers Association (INACA) has also filed letters of protests with the government, objecting to the introduction of the new compensation levels. Tengku Burhanuddin, the secretary general of INACA, argues that Indonesian airlines already pay compensation when flights are delayed and the new higher  level of compensation are not contemplated by existing levels of insurance coverage.