Free Cancellation Fee on the Cancellation of Air Ticket Within 48 Hours: DGCA Proposes New Rules.

Reference to Economic Times. The Directorate General of Civil Aviation (DGCA) has suggested a number of new regulations that will result in the making of air ticket cancellations and refunds more transparent and accessible to the passengers. The best part of the offer is a 48 hour look-in period, during which the passengers may cancel or change the bookings of the flights without any extra fee.

Look-In 48 Hours of Free cancelations.

The new draft is that in 48 hours after booking, the passengers will be allowed to cancel or modify the flight tickets without any cancellation fee. This however will not be applicable to domestic flights within a period of five days and international flights within a period of fifteen days at the time of booking.

The DGCA clearly pointed out that this choice will solely be provided when the tickets are booked via the official site of the airline and once the 48 hours time is over the usual cancellation costs will be charged.

Passenger Name correction at no fee.

The draft guidelines also suggest that the airline companies are not supposed to charge passengers to correct spelling mistakes in their names. This is a remedy that should be done within 24 hrs of booking but only when the ticket is made via the airline site. This action will minimize wasteful charges and alleviate anxiety to the passengers who commit trivial mistakes at the time of booking.

Better turnaround on Cash and Credit Card Payments.

The DGCA draft has rigid refund schedules.

• Airline have to refund the payment within seven days after cancellation in the case of credit card payments.
• In case of cash transaction, the refunds are to be made immediately in the office of the airline where the ticket was purchased.

This action is aimed at accelerating the refunding procedure and reimburse the passengers in time.

Ticket Money Back on Travel Agent Bookings.

In case a ticket is bought via a travel agent or an online portal, the airline is still the one accountable in terms of refund. As per the proposal, airlines have to make sure that the complete refund should be done within 21 working days. This policy removes misunderstanding between the passengers and the agents on the responsibility of the refunds.

Full Refund of Taxes and Fees

Regardless of the basic fare being non-refundable, the passengers will still have the choice of a refund of the statutory taxes and airport charges including User Development Fee (UDF), Airport Development Fee (ADF) and Passenger Service Fee (PSF).
This provision will be applicable to all types of fares such as promotional fares and even discounted fares making the different types of tickets fair.

Choice on Credit Shells- Passengers.

The DGCA made it very clear that the choice to get back the money in form of credit shell will be left to the passenger. The airlines will not be able to default credit shells, which usually limited the access of passengers to their money without any efforts.

Refund and Cancellation Policies Transparency.

Airlines will also be mandated to have the amount of refund and the cancellation policy clearly shown, during the time of booking. According to the DGCA, the amount of refund and the breakdown should be indicated either on the ticket or on a separate form.
In addition, the cancellation fees should be placed in a prominent position, meaning that they should be well known by the passengers prior to booking.

Limit on Abortion of the Maximum Cancellation Charges.

As the suggested rule suggests, the amount of the cancellation charge cannot be more than the basic fare and the fuel surcharge. The agents should not impose any additional fee without it being evident in the booking process. The DGCA also instructed airlines to implement this regulation by using their contracts with agents and online portals in order to avoid the hidden costs.

No Additional Processing Refunds Fee.

In order to safeguard the passengers against unrelated expenses, airlines will not be allowed to charge extra charges to process any refund. This action supports the aim of DGCA to harmonize the process of refunding in different airlines.

Medical Emergency Special Provisions.

Humanitarian clause is also contained in the DGCA proposal. When passengers cancel their tickets because of medical emergencies, airlines can either give them a full refund or a credit shell depending on the choice of the passenger.

Indian rules on refund rules have to be followed by foreign carriers.

The Civil Aviation Requirements (CAR) will make foreign airlines that operate in India meet Indian refund norms. They are however free to pursue the rules of your home country refund laws as long as they are not in conflict with the Indian law.

Community Survey Deadline November 30.

The DGCA has proposed the draft rules to the public and is accepting comments and suggestions on them before November 30, 2025. After scrutiny, the end policy will be declared establishing a new standard of airline refund in India.

Key Takeaway

Through these proposals, the DGCA will seek to establish a transparent and fair refund system that is passenger friendly. It is expected that the introduction of the 48-hour free cancellation window, faster refunds, and apparent policies of refund will be a great relief to Indian air travelers.

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