NEW DELHI: In a major move aimed at protecting flyers, the Directorate General of Civil Aviation (DGCA) has proposed several measures regarding the refund of airline tickets. Key changes include an option to cancel tickets without any charges within 48 hours, a requirement for airlines to specify the refund amount in case of cancellation, and the refund of charges such as the User Development Fee (UDF) if a ticket is not utilized. These measures follow numerous complaints from the public over unethical practices by airlines.
In a draft made public on its website, the DGCA stated, “While the government is committed not to interfere in the commercial practices of airlines, the volume of complaints necessitates affirmative action to safeguard the interests of the traveling public. The matter has been discussed in several meetings with airlines, with no improvement in the refund system. It is now considered that the onus rests with the Government to set minimum benchmarks for refund policies to address the growing dissatisfaction among passengers regarding refund procedures adopted by some airlines.”
Look-in Option for 48 Hours
The DGCA has proposed that airlines must provide a “Look-in option” for 48 hours from the time of booking. “During this period, passengers can cancel or amend their ticket without additional charges, except for the normal prevailing fare for any revised flight,” the draft stated.
This facility will not be available for flights departing in less than five days for domestic flights and 15 days for international flights when booked directly through the airline website. The option is not available beyond 48 hours from the initial booking, and passengers must pay any relevant cancellation fees for changes made afterward.
To prevent airlines from holding back ticket fares as credit for future travel, the DGCA clarified, “The option of holding the refund amount in a credit shell shall be at the passenger’s discretion and not the default practice of the airline.”
Airlines are also required to clearly announce the refund amount and its breakdown on the ticket or a separate form. “The policy and refund amount shall also be displayed on the airlines’ respective websites,” the draft said.
All statutory taxes and fees, including UDF, Airport Development Fee (ADF), or Passenger Service Fee (PSF), must be refunded in case of ticket cancellation, non-utilization, or no-show. This applies to all fare types, including promotional or special fares, even if the basic fare is non-refundable.
For credit card payments, refunds must be made within seven days to the cardholder’s account. For cash transactions, refunds must be issued immediately at the airline office where the ticket was purchased.
For tickets purchased through travel agents or online portals, the airline remains responsible for the refund process. Airlines must ensure refunds are completed within 21 working days.
Changes for Regular Cancellations
Airlines or their agents cannot levy cancellation charges exceeding the basic fare plus fuel surcharge. This does not include charges by travel agents, which must be fully disclosed at the time of booking.
No additional charges may be imposed to process a refund or to correct a passenger’s name if the error is pointed out within 24 hours of booking through the airline’s website.
Foreign carriers operating to and from India must issue refunds in accordance with the regulations of their country of origin.
The draft has been issued by DGCA Director General Faiz Ahmed Kidwai and allows airlines, travel agents, and passengers until November 30 to provide feedback.
This Civil Aviation Requirement has been issued under Rule 133A of the Aircraft Rules.
