At the heart of the proposal is the introduction of a 48-hour “look-in” window, which allows passengers to cancel or modify their booking without any penalty.
The Directorate General of Civil Aviation’s (DGCA) proposed guidelines on air ticket refunds will offer great relief to passengers, who have been at the receiving end with opaque refund policies, steep cancellation fees, delayed reimbursements and forced credit shells.
The draft Civil Aviation Requirements (CAR) issued by the aviation regulator seeks to address the crucial issues by establishing minimum standards of transparency, accountability and fairness across the aviation sector.
At the heart of the proposal is the introduction of a 48-hour “look-in” window, which allows passengers to cancel or modify their booking without any penalty. This measure acknowledges that people’s travel plans can change, and they should not be punished for reconsidering itineraries shortly after purchase.
In an attempt to protect the interests of airlines, the DGCA sought to exclude flights departing within five days (domestic) and 15 days (international) to prevent misuse of the look-in provision and affecting airlines’ operational planning.
The DGCA has also clarified that when even tickets are booked through travel agents, the responsibility for issuing the refund lies with the airline, as the agent is the representative of the airline. This removes a grey area which the airlines often used to escape accountability.
The proposal also mandates that airlines must clearly display cancellation charges upfront and caps these fees to prevent them from exceeding the basic fare plus fuel surcharge. These steps could put an end to the practice of airlines retaining nearly the entire ticket cost even when cancellations are made well in advance.
Despite proposing changes to the refund, the regulator has made it clear that it was forced to intervene to safeguard the interest of people after airlines failed to address passenger grievances satisfactorily. Unless the airlines arrive at a mutually beneficial business proposition that takes care of the interests of passengers as well, they cannot have long-term stability.
