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22 Jan 2019
Suggestion View - 194
Flight delay of 6 hours from Gold Coast

I saw this news report sent to me in an email from AsiaOne. I was surprised that the article was in dated 1 June 2015. Why did AsiaOne send it to me now, in 2019?

It is probably due to a programming error, or may I say a technical issue with Asia One. 

Whenever there is a long delay, the airline will get a bad reputation and a bad name. But Scoot can convert it into a positive event. Instead a bad name, they can get a good name. 

What can Scoot do? 

This is what I would do, if I were in charge in Scoot or Singapore Airlines. I would give each passenger a compensation of 30% of their airfare, if the flight is delayed by more than three hours. 

I am sure that the affected customers will be happy to get the compensation. Sure, they will still prefer the flight to leave on time, but they will understand that some of these technical issues are unavoidable. They will consider the airline to be fair to customers.

Can Scoot afford to pay this compensation? Sure they can. Their statistics will indicate how often this type of incident arises. Suppose it happens to 1% of all flight.  Yes, it will add 0.3% to the cost of their airfare. If the average airfare is $300, it will add $1. So, they can sell their airfare for $1 more. 

Should Scoot buy insurance for the airfare? There is no need for them to insure this risk. They can carry it as self-insurance. 

Tan Kin Lian


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