Deep Dive Podcast: When flights run into trouble, how much money should you get?
Singapore Airlines (SIA) made compensation offers to all 211 passengers on the turbulence-hit SQ321 flight. How are amounts derived?
CNA's weekly news podcast takes a deep dive into issues that people talk about at dining tables and along the office corridors. Hosted by Steven Chia and Crispina Robert.
Some passengers of SQ321 were given cash advances in light of injuries when the aircraft experienced severe turbulence. Are all airlines obliged to compensate? How are amounts decided and could you later sue for more?
Lawyers Paul Ng, head of aviation at Rajah and Tann Singapore LLP, and Chooi Jing Yen from Eugene Thuraisingam LLP are guests.
Jump to these key moments:
- 2:23 How airline compensations work
- 7:37 SQ321 and why goodwill payments are made
- 15:01 When do passengers go to court?
- 20:20 Increased insurance cost will trickle down to passengers
Here's an excerpt of the conversation:
Steven Chia:
We have to ask you, is there a concern that this may also result in higher fares for all of us, because airlines are then going to say, well, I got to buy more insurance, I got to take more protection. I'm going to factor in more risk. Will this then trickle down to the ticket prices we see?
Chooi Jing Yen:
If it really is the case that we are going to see more instances of unpredictable turbulence affecting aircraft, then yes, it's going to be quite inevitable. Because you look at the Montreal Convention, you know that airlines are going to be liable for a certain amount. If we are going to see more of these incidents, then I don't see costs not rising for passengers.
Crispina Robert:
Especially when it comes to turbulence, right? Because reports are saying that climate change is something airlines can't control, right? Aircraft flying into an air pocket.
Paul Ng:
I just flew to New York on Singapore Airlines and any (time there was) turbulence, everybody had their seatbelts on. The stewardesses were seated, no food or drink. So choose an airline that has a good safety record ... Secondly, I think you do need to buy insurance. And on the point about ticket prices going up, it will go up because the cost of insurance will go up. If insurers have to cover the airlines for compensating the passengers for their injury, death or damage, and they will have to because you cannot fly an aircraft without third-party liability insurance. So insurance will go up, which means costs will go up.
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