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R.V.RAVEENDRAN, J.

Leave granted. Heard.

2. The appellant, an aviation company operating an air carrier under the name and style of IndiGo Airlines has filed this appeal aggrieved by the judgment of the Andhra Pradesh High Court dated 31.12.2009 dismissing its writ petition challenging the decision of the Permanent Lok Adalat for Public Utility Services, Hyderabad, dated 18.9.2009 awarding Rs.10,000 as compensation and Rs.2,000 as costs to the respondent herein.

Re : Question (ii) to (iv) Low cost carrier vis-a-vis full service carrier

20. The appellant is a low cost carrier. It is necessary to bear in mind the difference between a full service carrier and a low cost carrier, though both are passenger airlines. Low cost carriers tend to save on overheads, operational costs and more importantly on the services provided. Low cost carriers install the maximum number of seats possible in their aircraft, and attempt to operate the aircraft to optimum levels and fill the seats to capacity. The passengers, who prefer to travel on budget fares, when opting for low cost carriers know fully well that they cannot expect from them, the services associated with full service carriers. From the passenger's view point, the important difference between the two classes of airlines lies in the on-board service offered to them by the airlines. While full service carriers offer several services including free food and beverages on board, low cost carriers offer the minimal `no-frills' service which does not include any free food or beverages except water. But the fact that an airline is a low cost carrier does not mean that it can dilute the requirements relating to safety, security and maintenance. Nor can they refuse to comply with the minimum standards and requirements prescribed by the Director General of Civil Aviation (`DGCA' for short). The fact that it offers only `no- frills' service does not mean that it can absolve itself from liability for negligence, want of care or deficiency in service. Both types of carriers have clauses either excluding or limiting liability in respect of certain contingencies.

"19. In the absence of a contract to the contrary, the carrier is not to be liable for damage occasioned by delay in the carriage by air of passengers, baggage or cargo."

22. Rule 134 of the Aircraft Rules 1937 provides that no person shall operate any scheduled air transport services except with the permission of the Central Government. Rule 133A of the said Rules provides that the special directions issued by the Director General of Civil Aviation (`DGCA' for short) by way of circulars/notices to aircraft owners relating to operation and use of aircraft shall be complied with by the persons to whom such direction is issued. The Director General of Civil Aviation, Govt. of India, issued a circular No.8/2007 dated 5.12.2007, containing the guidelines for Aircraft operations during Low Visibility Conditions (Fog management) at IGI Airport, Delhi which were applicable on the relevant date (14.12.2007). Clauses 31, 32, 35 and 36 thereof are extracted below :

[emphasis supplied] Other directives referred by way of comparison

23. We may, by way of comparison also refer to the following provisions of the subsequent circular/CAR (Civil Aviation Requirements) dated 6.8.2010 issued by DGCA in regard to the facilities to be provided to passengers by airlines due to denied boarding, cancellation or delays in flights, which came into effect from 15.8.2010.