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05-05-2012, 11:38 AM #1
U.S. hits Air India with $80K fineAs if Civil Aviation Minister Ajit Singh’s announcement on Thursday that India’s financially beleaguered national carrier Air India had incurred a Rs. 5,548.26 crore loss during 2008-09 was not enough, the U.S. Department of Transportation (DOT) on Friday pushed the airline’s prospects into bleaker territory still as it assessed a civil penalty of $80,000 against it.
Citing Air India’s failure to post customer service and tarmac delay contingency plans on its website as well as failing to adequately inform passengers about its optional fees, the U.S. DOT made an example out of India’s struggling national airline. Air India is the first entity facing a penalty assessed for a violation of the DOT’s new airline consumer rules that took effect August 23 last year.
The move could potentially embarrass India and U.S. leaders meeting in Washington next month for the third round of the bilateral Strategic Dialogue. Amidst a growing list of disappointments in the relationship on the economic and strategic fronts, including the MMRCA fighter deal that the U.S. lost out on, the nuclear liability bill that has stalled the landmark civil nuclear agreement and tensions over Iranian oil imports, this not-insignificant fine could well make further progress in advancing cooperation laborious....being a human...
05-06-2012, 12:42 AM #2