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When airlines compensate passengers, bottom line gets pinched

When airlines compensate passengers, bottom line gets pinched

Flight cancellations and delays continue to be a major issue for both airline carriers and their customers.  According to a report issued by US Department of Transportation, airlines canceled 1.7 percent of their scheduled flights in December 2015, up 0.3 percent from the previous year.

Last month, US airlines canceled 88 flights and delayed 1,355 flights between December 1 and December 20, according to a report published by airline data provider Flight Stats.

A large expense for many airlines is the processing of claims to passengers who are impacted by flight disruptions. The time and effort expended by airline employees to manually process cancelled or delayed flights can be significant.

“Flight disruption is an unfortunate but expected consequence of our increasing reliance on air travel to take us from one destination to another in the shortest period of time. However, automation can substantially reduce an airline’s costs associated with processing claims to customers who are eligible to receive compensation for flight cancelations and delays,” said Bhupender Singh, chief executive of a leading global business process outsourcing company.

He added that it can greatly reduce the impact of processing claims on the airlines’ bottom line, as well as speed up the time it takes to compensate airline passengers, thus helping improve overall customer satisfaction.

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