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Making (ACD) 2021 - 22 course by Prof. N. Ravichandran from Feb 22, 2022 to Mar 31, 2022.

Indian Institute of Management

Ahmedabad IIMA/QM0277

Dr. Swati Bhargava:

The Nepal Earthquake, Travel to Ahmedabad
In May 2015, Dr. Swati Bhargava, a faculty in Organizational Psychology of a nationally
reputed higher educational institution located in the western part of India, was planning to
take some action regarding her horrifying, costly and time consuming journey during the
recent travel experience from Kathmandu to Ahmedabad via Delhi by an Indian Low Cost
Airline (ILCA1)*.

Bhargava was scheduled to travel from Kathmandu to Delhi on April 25, 2015 and from
Delhi to Ahmedabad on April 26, 2015. Due to the earthquake in Nepal, the Kathmandu
International airport in Nepal was closed for traffic. With great effort, after a wait of about
24 hours, she was able board the flight to Delhi on April 26, 2015. On arrival in Delhi,
Bhargava was told that she needed another ticket to travel to Ahmedabad. Her earlier
reservation was not recognized by ILCA. She also had to find an accommodation on her
own in Delhi for the night of April 26, 2015.

She was inconvenienced by the way in which the airline had treated her when her travel
schedule was impacted by a natural crisis. During her dire need for support in Kathmandu,
the airline provided none. When she recollected this experience, it made her angry and
frustrated. She wanted to do something to remedy the situation in the larger interest of other
passengers.

She was considering (a) writing to the CEO of the airline seeking redressal, (b) writing to the
ombudsman service, (c) file a writ petition and demand adequate compensation from the
airline for the hardships she went through. Given her professional commitments and her
own limitations to follow through a formal legal remedial process, she was in a dilemma as
to whether she was to forget this event as a bad experience or initiate some responsive
action.

1 ILCA was a low-cost airline headquartered at Gurgaon, India. It was the largest airline in India in terms of
passengers carried with a 36.8% market share as of February 2016. The airline operated 679 daily flights to 40
destinations and was the second largest low-cost carrier in Asia. It had its primary hub at the Indira Gandhi
International Airport, Delhi.

Prepared by Professor N. Ravichandran, Indian Institute of Management, Ahmedabad.

Cases of the Indian Institute of Management, Ahmedabad, are prepared as a basis for classroom
discussion. They are not designed to present illustrations of either correct or incorrect handling of
administrative problems. The case is based on a real-life experience. The first draft of this case was a
group assignment, done as a part of the workshop on “Case Method of Teaching" for the faculty of
IMERT, Pune. The support received from Vaseem Shaikh, Academic Associate in IIMA and Pavithra
Seshadri, Winter Intern, NIT Trichy, in preparing this document is greatly acknowledged.
© 2017 by the Indian Institute of Management, Ahmedabad.
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DR. SWATI BHARGAVA

Bhargava after earning a Ph.D. in psychology in 1980, specializing in gender bias at work
place in Information Technology enabled industries in India, joined as a faculty in a reputed
higher educational institution located in the western part of India. Apart from teaching
courses in psychology, she developed and offered courses on Business strategy, Leadership
and Business Ethics. She conducted several customized executive courses on these topics for
various organizations in India and abroad.

School of Management, Kathmandu University, Nepal invited her to teach two courses (on
Strategy and Business Ethics) for MBA and Executive MBA students in March–June, 2015.
The University offered her an honorarium and a round trip airfare from Ahmedabad to
Kathmandu for this teaching assignment. The assignment required her to stay in
Kathmandu for a period of four weeks at a stretch and complete the courses. Due to other
academic commitments in India, Bhargava could not stay in Kathmandu continuously for
the entire duration of four weeks. Hence, she proposed an alternative to the University, that
she would teach these courses in three modules, each for a duration of four days over a
period of six weeks. The University could consider meeting her boarding and lodging
expenses during her stay in Kathmandu. The multiple trips may be funded from the
honorarium budget available. The Dean, School of the Management in Kathmandu
University enthusiastically agreed to this proposal.

Bhargava began her lectures in April 2015 and made three round trips to complete the
courses. The last trip was from April 12, 2015 to April 25, 2015. After completing the courses
on April 25, 2015, she left for the airport to board a flight to Ahmedabad via Delhi.

EARTH QUAKE ON APRIL 25, 2015

While travelling to the airport, five kilometers from the University, Bhargava noticed
something eerie and peculiar. Several young men and women had moved out of their
residences and offices and had gathered in the middle of the road, far away from buildings.
About a dozen motor cycles that drove in front of her car, skidded and fell on the roadside.
Perplexed by the situation Bhargava asked the taxi driver about the reason for such an
abnormal happening. The driver told her that there was an earthquake2 and stopped the
vehicle abruptly in the middle of the road.

After about 10 minutes, the driver restarted the car and moved towards the airport. On the
highway leading to airport, Bhargava observed some damages due to the earthquake. The
driver reached the airport in about 20 minutes. There was no traffic and the road to the
airport was operational. The driver after dropping Bhargava at the international terminal of
Kathmandu airport took leave of her and left for the city.

Bhargava reached the designated counter at the airport terminal to collect her boarding pass
to travel to Delhi. She was told, due to the earthquake, the airport was closed until further

2 On Saturday, April 25, 2015 a massive earthquake of magnitude 7.8 on the Richter scale struck Nepal with an
epicentre less than 50 miles northwest of the capital, Kathmandu. It was the worst quake to strike the region in
more than 80 years. The earthquake killed 8700, injured atleast 22,000 and affected eight million. It destroyed
505,000 houses and damaged another 279,000. Thirty-nine out of eighty-five districts of Nepal reported damage
(accounting for 40% of geographical area). Immediately after the earthquake, 2.8 million people including 1.1
million children needed humanitarian assistance.
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orders. It was expected to be operational only after mandatory safety checks on power
cables and other navigational equipment were completed.

Meanwhile, there were incidents of secondary tremors. There was no power and water
supply. Most commercial shops (which sold essential supplies and refreshments) were
either closed or operated with limited variety. The price of whatever was available was at
least three times the normal price.

Bhargava joined a small group of passengers who were stranded at the airport due to the
earthquake. They were all scheduled to travel from Kathmandu to Delhi at 14:30 hrs on
April 25, 2015. An agent representing ILCA airline, reached out to the stranded passengers
and informed them that the flight scheduled to leave at 14:30 hrs on April 25, 2015 had been
cancelled. ILCA would refund the entire ticket amount for passengers who were holding a
confirmed booking in that flight. Passengers were advised to make their own arrangements
for their stay and subsequent travel to Delhi. According to him, nothing could be predicted
about the schedule of the next flight to Delhi.

Bhargava, perplexed by these developments, was not sure as to how to respond to the
sequence of events and the consequences arising out of this. She was disappointed that the
airline extended no help to the stranded passengers due to a natural calamity. Realizing that
very little help was likely to come from the Kathmandu airport authority, she decided to
fend for herself in the completely unexpected situation in a foreign country.

RETURNING TO THE UNIVERSITY CAMPUS

After the earthquake, the public transport system in Kathmandu came to a grinding halt.
Taking advantage of the situation, the few taxi drivers who operated charged exorbitant
fares. After considerable effort, Bhargava was able to find a taxi to bring her back to the
Kathmandu University city campus at a price of NPR 500 3 (two and a half times the normal
price). On her way to the city campus, she saw the impact of the earthquake on the buildings
and the city infrastructure. Several heritage buildings and old houses in the lanes and by
lanes of the city were reduced to a heap of bricks. The water supply was disrupted. As a
precaution, the city administration had disconnected the power supply. Several thousands
of people who were rendered homeless occupied the open roads and streets. The
information related to the damage caused by the earthquake in various districts of Nepal
was trickling to the capital, Kathmandu. Having realized the enormity of the situation,
international agencies and friendly neighbours liberally donated and joined the rescue and
relief operations.

Bhargava reached the university after a half an hour ride. She noticed significant damages to
the property and buildings of the University City campus. About a hundred women
students who were staying in the ladies hostel on the city campus of Kathmandu University
were advised to vacate the hostel premises on account of safety. A canteen operating in the
basement of the ladies hostel was closed immediately after the earthquake to protect the
employees from possible building collapse. Bhargava had stayed in the university
guesthouse on the fifth floor of the main administrative building of the city campus. After
the earth quake the main administrative building was declared unsafe for human
occupation.

3 NPR is Nepalese Rupee, the official currency of Nepal.

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However, Bhargava was received warmly by the teachers and the students of the university
in spite of the uncertainty and the risk associated with the unprecedented natural disaster.
They advised Bhargava to stay in the residential apartment of one of their colleagues, Col.
Rajkumar, a retired Nepal Army officer, who was teaching Organizational Behaviour in the
School of Management, City campus, Kathmandu University.

STAYING WITH COL. RAJKUMAR’S FAMILY

Rajkumar escorted Bhargava to his residence in his private car. Bhargava found Rajkumar to
be quite warm, affectionate and kind. She observed that the people living in the residential
area were afraid to stay inside their houses and decided to camp in open areas. As a
precaution, the power company had disconnected the power supply. Hence, there was no
water supply and the communication network was also not operational. Essential items like
milk, vegetables and bread were in short supply.

Bhargava spent the night of April 25, 2015 with Rajkumar’s family. They had dinner
together. To reduce the anxiety and stress levels the family members continued to talk
among themselves and also with Bhargava. Next day morning (April 26, 2016), Bhargava
and the family members had breakfast together.

Nepal radio announced that Government of India had commenced rescue operations to
airlift stranded Indian public in Kathmandu. With great difficulty (due to poor telephone
communication), Rajkumar contacted the Indian Embassy in Kathmandu by phone and
sought help for travel arrangements for Bhargava. The Embassy officials advised Bhargava
to go to the Kathmandu airport and avail the facilities as appropriate.

BACK TO KATHMANDU AIRPORT ON APRIL 26, 2015

Rajkumar dropped Bhargava in the airport with some essential food items like fruits, bread,
biscuits and water. Bhargava thanked him for his act of kindness and timely help. Rajkumar
felt embarrassed because he could not secure a return flight to Delhi for Bhargava. He had
his own compulsions to take care of himself and his family members from the uncertain
situation arising out of a major natural disaster. Further, his (residence) neighbor who was
in service in the Nepal Defense Forces was summoned to join rescue operations.
Consequently, Rajkumar had the additional responsibility of looking after the welfare and
safety of his neighbour’s family.

Bhargava surveyed the situation at the Kathmandu International airport at 9:00 a.m. on
April 26, 2015. The power supply in the airport had resumed. Help from friendly
neighboring countries was pouring in. India played a major role in helping Nepal to cope up
with the situation arising out of a massive earthquake. There was no parking place for
planes in the airport tarmac. The logistics related to drawing material from the relief plane
and delivering it to the affected area were not well organized due to poor inter-departmental
corporation and bureaucracy. Hence, the relief planes had to wait longer in Kathmandu
airport blocking/delaying potential passenger traffic in and out of Nepal.

The commercial plane operation was suspended, until further information. Thousands of
people were stranded at the airport. The Government of India had organized evacuation
operations of Indian nationals stranded in Nepal. There was a queue of about 1000 Indian
nationals waiting for evacuation. Until 9:00 a.m. on April 26, 2015 there was only one sortie
operated from Kathmandu to Delhi, to evacuate about 250 Indian nationals. The evacuation
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operation by the Indian Government was slow and unorganized resulting in longer and
uncertain waiting time.

Bhargava waited in the line for about six hours. Occasionally, there was chaos and confusion
due to secondary tremors. By about 16:00 hrs, two more sorties were organized by the
Indian Government evacuating about 500 stranded people. Bhargava felt that if she was
going to depend on the Indian Government evacuation process, the wait was going to be
long. She decided to explore other options to return to Ahmedabad.

NEGOTIATING WITH THE AIRLINES

She visited the commercial offices of Nepal airlines, Jet airways, Indian Airlines and ILCA at
the airport. Since the tarmac of the airport had no space for commercial planes, Indian
airlines had diverted its flight to Varanasi; Jet Airways to Bombay. ILCA plane had departed
late from Delhi and was airborne to Kathmandu. Nepal airlines had suspended operations
until further notice. The Indian airlines and Jet airlines staff informed Bhargava that seats
were available in the return flight to Delhi, but ticket could be issued only after the aircraft
landed in Kathmandu. The response from ILCA staff was non-committal even though
Bhargava had a confirmed ticket to Delhi on April 25, 2015. Soon after, the staff confirmed
the departure of ILCA plane from Delhi and advised Bhargava to consult the agent at the
check-in counter.

Reflecting upon the situation, Bhargava decided to take a chance and decided to join the
queue of ILCA airlines check in counter for a flight departing to Delhi at 18:30 on April 26,
2015. The check in process had just begun. Passengers with confirmed tickets were attended
to. Subsequently about a dozen influential passengers were accommodated in that flight to
Delhi even though they did not have a confirmed booking on this flight to Delhi. A group of
four young men who had confirmed bookings to Delhi five days from April 26, 2015 were
accommodated by the agent. Three foreign women passengers were accommodated in the
same flight to Delhi. The agent was exceptionally courteous to them. He even exchanged
greetings with the foreign nationals in their native language. An elderly passenger from
Gujarat, India was pleading to be accommodated in the flight scheduled to leave at 18:30 hrs
but his request was not responded to by the airline.

Bhargava’s request to be accommodated in that flight to Delhi based on the confirmed ticket
on the previous day by the same flight (which got cancelled due to the earth quake in Nepal)
did not evoke any response from the agent. Bhargava stood in front of the counter and kept
on repeating her request to be accommodated in this flight. After some time, Bhargava
brought to the notice of the agent that she was a teacher in a reputed institution in India, a
friendly neighbor to Nepal. She had come to Kathmandu University to teach and hence she
may please be treated as a guest of the country. She had a confirmed ticket to Ahmedabad
via Delhi by ILCA airlines on April 25, 2015. The flight got cancelled due to the earth quake
in Nepal. She was stranded in Nepal with no option to return to India in the near future.
Therefore, she urged that she be accommodated in this flight on April 26, 2015 to Delhi.

After some time, the agent issued her a boarding pass to Delhi by that ILCA flight. The
Kathmandu airport was over crowded. There was complete chaos in the airport. After
completing the boarding formalities, Bhargava shared her remaining food supplies with
fellow passengers in the waiting lounge. Finally, the ILCA flight departed Kathmandu an
hour and a half after the scheduled departure time and landed in Delhi at 22:00 hrs.
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EXPERIENCE IN DELHI

On arrival at the Delhi airport Bhargava reached the ILCA airline counter. She showed her
confirmed ticket to Ahmedabad on April 25, 2015. She explained the background related to
her late arrival and requested that she be issued another ticket or accommodated in an
earlier flight to Ahmedabad. Bhargava was willing to pay any additional charges related to
this change.

The person at the ILCA airlines counter was courteous and willing to help. The counter staff
person consulted his immediate supervisor and conducted verifications on the booking held
by Bhargava. After about two hours of wait Bhargava was told that nothing could be done
in helping her to use her ticket, as the ticket was booked under a corporate plan (Kathmandu
University). As per the rules of the airline, any change in such bookings could be done only
by approaching the call center. The call center agent who received the call expressed his
inability to make any changes in the booking without the authorization and approval of the
Finance Controller who would be available only at 9:00 a.m. the next day. Effectively this
meant Bhargava could do nothing until 9:00 a.m. the next day morning.

She went down to the travel counter at the Delhi airport domestic terminal and made a
booking in a hotel to stay in Delhi for the night of April 26, 2015 at a cost of INR 5500. She
walked upto ILCA airlines counter and made a fresh booking for a flight to Ahmedabad
departing at 11:00 a.m. on April 27, 2015 incurring an additional expense of INR 6520.

She reached the hotel by 02:30 a.m. on April 27, 2015. She had a comfortable night at the
hotel. After breakfast, she reached the Delhi airport to board the flight to Ahmedabad. She
reached her residence in Ahmedabad by 01:00 p.m. on April 27, 2015.

After all the turmoil and fatigue, Bhargava was thinking deeply about her first-hand
experience of customer service of a commercial organization in the event of an
unprecedented natural calamity and its aftermath. She felt pleased and touched by the
warmth and help she received from her friends in Kathmandu University. The ILCA staff at
Delhi could not respond to her request affirmatively in view of the procedural constraints of
the airline. However, they were polite and courteous to her. She was unable to come to
terms with the indifference and insensitivity of ILCA airlines agent in Kathmandu airport.
She opined that the adhoc manner in which the agent accommodated stranded passengers
was unfair and unprofessional. She was recovering from the shock of the horrifying earth
quake she witnessed in Nepal. She was equally upset with her travel experience with ILCA
airlines. As a responsible citizen and a management faculty of a reputed institution, she
wondered what she could do so that in future others would be treated with more dignity
and compassion in such unforeseen calamities.

THE CHALLENGE

Bhargava was considering three possible actions against the airline based on her tormenting
experience of her recent travel from Kathmandu. The first option was to write to the Chief
Executive Officer (CEO) of the airlines to narrate her experience and demand appropriate
remedial measures. She was not sure whether she would get traction with the CEO on her
complaint. It was customary for such complaints to be forwarded to an official in charge of
customer services for follow up. Bhargava was also not aware of any internal procedures of
the airlines to track passenger complaints.
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The next option was to write to ombudsman services explaining in detail her experience
with ILCA airlines and seek appropriate remedial measures and corrective actions. From the
available public information, her complaint (based on her experience) could be one of its
kinds. In addition, there was no information available in the public domain about the
resolution of the complaints received by ombudsman in terms of time to resolve the
complaint, follow up action required by the complainant, and the nature of resolution of
complaints. Bhargava was personally in favour of approaching an ombudsman service but
was not sure as how effective it would be in resolving her complaint.

The third option was to file a writ petition in the relevant High Court and seek suitable
directions from the court in terms of compensation for the hardship she went through while
returning from Nepal to Ahmedabad. Bhargava was aware that pursuing this option would
mean engaging an advocate, incurring legal expenses, provide credible documents to the
lawyer to present her case effectively in the court of law. This option perhaps would take a
lot more time, effort and energy. Further, it was not clear to her whether such a writ petition
had to be filed in Ahmedabad or in Delhi.

While Bhargava felt that the airline had treated her in the most unprofessional way, she was
not sure whether the efforts necessary to sensitize the airline on customer experience and an
appropriate corrective action was worth the potential outcome. She also had several
professional commitments coming up in the next few months in India and she was not sure
as to what her response to her travel experience should be.
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ANNEXURE 1
Ombudsman service in the Airline industry

In the recent past, Indian civil aviation sector has grown manifold. Apart from the state-owned airline,
a number of private companies have entered the arena, thereby providing more choices to the
4
passenger. With the arrival of low cost airline carriers in India, air travel has become cheaper.
5
The population of air travelers in domestic area in 2014 (Jan-Oct) was 839 lakhs compared to 77.03
lakhs in 2002-03. The high growth rate in air travel services in India was likely to continue in future
also. The airlines were adding more and more cities to their list of destinations covered throughout the
4
country. But it had been observed that Airlines were not providing adequate services to their client
users, resulting in dissatisfaction among the passengers right from booking the ticket to boarding the
aircraft. A large number of consumer disputes had arisen out of deficiency in service provided by the
4
airlines.

Data available with the Directorate General of Civil Aviation (DGCA) showed that in 2012, scheduled
6
airlines received a total of 9,440 complaints with a majority of them related to baggage claims. Data
provided by the Airports Authority of India (AAI) indicated that the highest number of complaints
received was related to airport services (47%), followed by complaints about deficiency in vendor
services (19%). The least number of complaints were made about customs (2%).

Public dissatisfaction lead DGCA to frame several Civil Aviation Requirement Rules (CAR) on
passenger facilities like revised refund rules, compensation on denial of boarding cases, declaration
4
of consolidated fares with clear understanding of break-up components, etc. Several Gazette
notifications had been issued under this head. The ministry of civil aviation had started the process of
7
putting in place an ombudsman to redress passenger grievances and give binding orders.

A senior ministry official said, "The idea is to create a body empowered to give binding directions in
cases of complaints from public. It will create the much-needed forum to ventilate and remedy
8
grievances." The ombudsman was to look into complaints and act as an arbitrator to settle disputes
between consumers and the relevant organization.
4
Frequently reported complaints :

• Cancellation/Rescheduling of Flights/Delays are normal practice.

• Poor responses while enquiring on phones.
• Misinformation provided by Airlines staff when called on phones.
• Promised services are not provided.
• Long procedure in getting refund or even denial of refund.
• Denying boarding to the passengers having valid ticket and reported at proper check - in time
at the last moment due to over booking or some unknown reasons.
• Misinformation on confirmed booking.
• Unfriendly terms and conditions framed by the private airlines.
• Loss of baggage for which compensations are not paid or when paid.
• Pilferage of baggage.
• No proper guidance when the passengers are in harness.
• Misbehavior at the counter.

4 National Consumer Forum for Airlines Complains- http://www.nationalconsumerhelpline.in/airlines.aspx

5 10 lakhs = 1 million
6 Aviation ministry starts process to have ombudsman for consumer grievances, Business Standard, November
11, 2014
7 Govt plans ombudsman for aviation organizations, Live Mint, November 12, 2014.
8 Aviation ombudsman: Raju asks ministry to examine feasibility, Indian Express, November 12, 2014
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ANNEXURE 2
Timeline and description of major events related to Dr. Bhargava’s travel
from Kathmandu to Delhi

April 25, 2015

11:00 hrs Departure from Kathmandu University City Campus to the Airport.
11:56 hrs Occurrence of Earthquake
Confirmation of ticket on April 25, 2015 by flight ILCA, departure from Kathmandu at 14:00
hrs and arrival at Delhi at 15:30 hrs, Booking reference: M4S54S. Cost of the ticket:
INR.13,401. Date of booking: April 16, 2015, Booking status: Confirmed.
14:30 hrs Cancellation of ILCA flight by ILCA agent. Passengers with confirmed ticket were to get full
reimbursement. Passengers advised to make their own arrangements to travel out of
Kathmandu
16:00 hrs Return back to the University city campus by private taxi.
18:00 hrs Arrival at the residential house of Col. Rajkumar and dinner and stay at his residence with
his family.

April 26, 2015

09:00 hrs Arrival at the Kathmandu International Airport to explore the possibility of availing the
evacuation transportation operated by Government of India.
15:00 hrs Exploration with various commercial airlines in Kathmandu airport for possible options to
leave Kathmandu to Delhi.
17:00 hrs Joined the queue of ILCA Airlines check-in counter.
18:00 hrs After much of persuasion obtained a boarding pass to go to Delhi.
22:00 hrs Arrived in Delhi.
22:00 to 24:00 hrs
Conversation with the ILCA agency to reissue the ticket booked on ILCA 6E-157,
departure from Delhi April 26, 2015 20:40 hrs, arrival in Ahmedabad.22:10 hrs. PNR
number: X96ETZ.

April 27, 2015

01:23 hrs Purchase of a new ticket from Delhi to Ahmedabad on April 27, 2015. Scheduled
departure: 11:00 hrs. Cost of the ticket: INR 6520.
02:00 hrs Hotel booking at an expense of INR 5500
02:30 hrs Check-in in the hotel
11:00 hrs Departure from Delhi
13:00 hrs Arrival at Ahmedabad