Major Relief for Flyers: DGCA Drafts New Rules for Air Ticket Refunds and Free Cancellation

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Directorate General of Civil Aviation (DGCA), a regulatory body for civil aviation in India, has proposed crucial changes in the air ticket refund policy. According to the reports, flight passengers might soon be able to cancel their tickets without having to pay any additional charges. To avail this benefit, the passengers are given a 48-hour window, after which charges might be levied on ticket cancellations.

Faster Refunds and Agent Accountability

The Directorate General of Civil Aviation, or DGCA, has proposed major changes to the refund policy of flight tickets. These changes are primarily aimed at providing relief to flight travelers who want to cancel their ticket without suffering a heavy loss. The regulatory body has clearly stated the timelines for refund processing. Specifically, for tickets that are purchased through a travel agent or an online portal, the airlines shall now bear the "onus of refund" as the agents are deemed their representatives appointed by them.

The airlines must ensure that the refund process is completed within 21 working days. As far as the credit card payments are concerned, airlines must process the refund to the cardholder's account within seven days of cancellation. Cash transactions must receive an immediate refund from the airline office from where the ticket was purchased.

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Conditions for Free Cancellation and Name Correction
 

CAR draft stated that “Airline shall not levy any additional charge for correction in name of the same person when the error is pointed out by the passenger within 24 hours of making the booking, when ticket is booked directly through airline website.” Further adding, “During this period, passengers can cancel or amend the ticket without any additional charges, except for the normal prevailing fare for the revised flight for which the ticket is sought to be amended.”

Crucially, the 'Look-in option' is not available for domestic flights that are departing in less than five days. For international flights, this period is less than 15 days from the booking date. Additionally, an airline "shall not levy any additional charge for correction in the name of the same person" if the error is pointed out within 24 hours of booking, directly via the airline's website.