Clearing the Skies: The Imperative of ODR in Civil Aviation in India

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Civil aviation, like other sectors of the economy, can use ODR for faster and more economical dispute resolution. CIRC - CUTS Institute for Regulation and Competition researchers Mrinalini Srivastava and Navneet Sharma find opportunities for the adoption of ODR in the civil aviation sector.

TATA - Air India - An Acquisition of Case Load

Tata Group-controlled Air India's recent efforts to tackle a backlog of over 600 legal cases highlight the magnitude of the problem. Some of these cases date back more than 15 years, painting a grim picture of the challenges faced by airlines in resolving disputes. Air India's CEO and MD, Campbell Wilson, has reported that their team is gradually making headway, amicably resolving a quarter of the backlog in recent months. In March 2002, Minister of State for Civil Aviation, Shri VK Singh, revealed that Air India was grappling with a staggering 2,657 pending cases in Indian and international courts. This backlog includes a myriad of cases, ranging from consumer complaints to employee service issues.

The Backlog of Aviation Disputes

In the vast and dynamic realm of civil aviation, where millions of passengers take to the skies each day, the potential for disputes and conflicts is ever-present. In 2022, the Indian aviation industry witnessed significant growth in both domestic and international passenger numbers. Throughout the year, scheduled domestic airlines operated an impressive 9.43 lakh scheduled flights, carrying a total of 123.2 million passengers. This marked a substantial increase compared to the previous year, 2021, where 7.31 lakh scheduled flights transported 82.74 million passengers. The remarkable 48.9 per cent growth in domestic passengers carried by scheduled Indian carriers in 2022 reflects the expanding demand for air travel within the country.

Additionally, international routes experienced a substantial surge, with 43.4 million passengers transported in 2022, compared to 17.2 million in 2021, indicating a remarkable growth rate of 152.7 per cent. Scheduled Indian carriers carried out these 20.9 million passengers, while scheduled foreign carriers served 22.5 million passengers.

From delayed flights to lost luggage, from rescheduling nightmares to dissatisfaction with service quality, passengers often find themselves in frustrating situations that warrant resolution. The need for an efficient and accessible mechanism for dispute resolution is clear, and in recent years, Online Dispute Resolution (ODR) has emerged as a game-changing solution.

In India, digital grievance reporting and tracking systems for airports, flights, and other matters related to air travel are provided on the AirSewa digital platform. AirSewa is an initiative of the Ministry of Civil Aviation, Government of India, launched in November 2016. The Nodal Officer of the Ministry of Civil Aviation directly handles the digitally submitted complaint. Consumers may also report concerns about Customs, Immigration, BCAS (Bureau of Civil Aviation Security), DGCA (Directorate General of Civil Aviation), Helicopter (general aviation), or Security. They may also complain about the airports (if the issues still need to be resolved or dissatisfied with respective airport authorities). Consumers can also file their complaints at the online consumer grievance resolution portals provided by the Airline companies for efficient resolution of disputes.

The Aviation Sector's Explosive Growth

Understanding the significance of ODR in the aviation industry necessitates acknowledging the sector's remarkable growth. India has become the third-largest domestic aviation market globally, with projections indicating a rise to the third-largest air passenger market by 2024, surpassing the UK. The International Air Transport Association (IATA) anticipates India overtaking China and the United States as the world's third-largest air passenger market by 2030.

This exponential growth is further reflected in the number of airplanes operating in the sector, which is expected to reach 1,100 planes by 2027. Airports in India are poised to handle an impressive 1 billion trips annually by 2023. This burgeoning sector accounts for 5% of India's GDP and has created four million jobs.

However, this growth also translates into a higher likelihood of disputes arising as the number of passengers and flights continues to surge. The increasing demand for air travel necessitates a more efficient mechanism for dispute resolution.

The Current State of Aviation Disputes

Understanding the scope of disputes in the aviation industry is crucial to appreciating the significance of ODR via the AirSewa Grievance platform. As of September 5, 2023, the AirSewa Grievance platform has played a crucial role in addressing passenger concerns. On that date, 38 grievances were received, contributing to a total of 77,301 grievances received since its inception. With 23 grievances successfully resolved on September 5, 2023, and 77,202 resolved in full, the platform has demonstrated its effectiveness in resolving aviation-related disputes. There were 15 pending grievances on that specific day, making a total of 98 pending cases up to September 5, 2023.

These grievances span various issues, from security concerns to complaints against specific airlines. The primary nature of disputes registered on Air Seva mainly includes deficiency in service, cancellations, delays, rescheduling, refunds, medical emergencies, loss or damage to luggage, and the availability of necessary facilities at airports.

In the ever-evolving world of civil aviation, where passengers' experiences can vary widely, the need for efficient and accessible dispute-resolution mechanisms is evident. Online Dispute Resolution (ODR) has emerged as a transformative solution, providing passengers and airlines alike with a streamlined approach to addressing and resolving aviation disputes, ultimately contributing to a smoother and more satisfactory travel experience for all.

The Roadblocks to ODR Adoption

Despite the clear need for ODR in civil aviation, several roadblocks hinder its widespread adoption. One significant challenge is the need for more awareness among consumers about their rights and the availability of ODR mechanisms. Additionally, the absence of trained professionals for ODR processes and the delayed resolution in the current mechanism discourage passengers from seeking timely redressal. Moreover, airlines often fail to provide proactive information to passengers, exacerbating the problem.

The plug-and-play integration of Independent Online Dispute Resolution (ODR) Service Providers offers a promising solution to the roadblocks hindering the widespread adoption of ODR in civil aviation. These service providers can bridge the awareness gap among consumers by actively promoting ODR mechanisms and educating passengers about their rights. By offering specialised training programs for professionals in the aviation industry, they can ensure that there is a pool of competent experts capable of efficiently handling ODR processes. Furthermore, independent ODR service providers can streamline dispute resolution, reducing delays and providing passengers with a quicker and more satisfactory redressal experience. Their proactive engagement with airlines can also encourage carriers to provide timely information to passengers, thus enhancing the overall effectiveness of ODR in civil aviation. In this way, plug-and-play integration of ODR service providers can be a crucial catalyst in overcoming these significant challenges and promoting the wider adoption of ODR in the aviation sector.

How ODR Can Make a Difference

Improving ODR through the AirSewa Online Grievance platform is crucial to address the challenges hindering its widespread adoption in civil aviation. Firstly, efforts should be made to enhance awareness among consumers regarding their rights and the existence of ODR mechanisms. Airlines and regulatory bodies can collaborate on awareness campaigns to educate passengers about their options for dispute resolution.

Secondly, addressing the issue of delayed resolution is essential. Streamlining the ODR process to ensure swift and efficient resolution of grievances should be a priority. This may involve increasing the number of trained professionals who can effectively manage and mediate disputes.

Lastly, airlines should take a more proactive role in providing information to passengers, especially during travel disruptions or incidents. Clear communication and guidance can help prevent grievances from escalating and lead to faster resolution. By addressing these roadblocks, the AirSewa Online Grievance platform can become a more effective tool for ensuring passenger satisfaction and upholding their rights in the realm of civil aviation.

Online Dispute Resolution offers a ray of hope in enhancing consumer dispute resolution within the aviation industry. By harnessing digital platforms and technology, ODR streamlines and expedites the resolution process. Passengers can submit complaints, track their cases, and engage in virtual mediation or negotiation sessions with airlines through user-friendly online portals, reducing the need for lengthy and costly court proceedings. By embracing ODR, the aviation industry can ensure that the skies remain clear not only for planes but also for the swift resolution of passenger grievances, ultimately enhancing customer satisfaction and trust in the industry.

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