Big Relief For Flyers Soon? DGCA Plans Rules For Faster Airline Ticket Refunds

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Directorate General of Civil Aviation (DGCA) has proposed stringent revised regulations to address the rising number of complaints over airline ticket refunds in India, mandating quicker payouts and more transparent cancellation policies.According to the regulator, three major issues have driven widespread passenger dissatisfaction: delays in refunds of unused tickets, reduction in refundable amounts, and airlines offering limited-time travel credit in place of refunds.“Despite multiple meetings with airlines, there has been no improvement,” the DGCA stated, adding that setting minimum benchmarks is now necessary to protect the traveling public.

Proposal for New Refund Rules for All Airlines Operating in India

Under the updated Civil Aviation Requirements (Section 3 – Air Transport, Series ‘M’, Part II), airlines must comply with the following:

• Tickets booked via travel agents/portals must be refunded within 21 working days
• All airport taxes and fees must be refunded — including on non-refundable fares
• A 48-hour “look-in” window must allow free cancellations or amendments on eligible tickets booked on airline websites
• Refund-to-credit-shell can only be done at the passenger’s request, not by default
• Cancellation charges must be displayed clearly during booking
• Penalties cannot exceed the basic fare plus fuel surcharge
• No additional fee may be charged to process refunds
• Name corrections due to spelling errors must be free if reported within 24 hours of direct online booking
• Credit card refunds must be processed within 7 days of cancellation
• Cash ticket refunds must be issued immediately by the airlines office from where the ticket was purchased.

Foreign carriers must comply with their home-country refund rules but follow India’s required refund timelines and methods.

Medical Emergencies Covered

Airlines may offer refunds or credit shells in cases where a ticket is cancelled due to a medical emergency.

Government Intervention Driven by Passenger Grievances

While noting that it “does not interfere in commercial practices,” the draft issued by DGCA said intervention became necessary due to persistent non-compliance and a surge in complaints.The draft was issued by Faiz Ahmed Kidwai, Director General of Civil Aviation.