SIA ordered to pay customer S$735 for downgrading ticket class without prior notice

SINGAPORE — Singapore Airlines (SIA) has been directed to pay 35,000 rupees (S$735) in compensation to an Indian businessman by an Indian consumer protection council, for downgrading his business class ticket to economy without prior notice.

Indian media reported today (June 22) that the businessman, Mr GRK Reddy, had flown on an SIA flight from Chennai to Singapore on April 19, 2011. Although Mr Reddy had booked a business class seat, he was informed at the check-in counter that he had to fly economy as business was overbooked and he was the last person to make the booking and to arrive for check-in.

According to documents from the District Consumer Disputes Redressal Forum of South Chennai issued on May 7 this year, SIA offered Mr Reddy a S$600 cash voucher — the difference between the classes' ticket prices — and a S$150 in-flight voucher as compensation. But Mr Reddy refused to accept SIA’s offer and later filed a legal notice to the airline seeking over S$104,000 in compensation, for damages, loss of image and mental agony.

In its reply, SIA noted that its booking conditions had clearly mentioned that passengers might not be able to travel in their booked class in the event of overbooking. Unsatisfied with the response, Mr Reddy filed a complaint with the consumer protection council, this time asking for more than S$41,000 in compensation.

The District Consumer Disputes Redressal Forum of South Chennai said that the downgrade, without prior notification, had amounted to defiency in service.

“Considering the situation where Reddy was compelled to travel in economy class it is acceptable that he underwent mental agony and hardship,” the forum said.

Singapore Airlines was thus directed to pay 30,000 rupees (S$630) to compensate for mental agony and hardship, and to pay 5,000 rupees (S$105) for the cost of the proceedings within six weeks, or face a 9 per cent interest rate on the compensation amount after.

A SIA representative told TODAY that the airline has paid the 35,000 rupees to Mr Reddy.