New Delhi, India: India’s aviation regulator, the Directorate General of Civil Aviation (DGCA), has proposed new passenger-centric rules aimed at increasing transparency and flexibility in air travel. The draft policy includes a 48-hour free cancellation and amendment window and a stricter 21-day refund timeline for all flight bookings.
According to the draft released by the DGCA, passengers will be allowed to cancel or modify their tickets within 48 hours of booking without paying any cancellation or change fee, provided that the scheduled departure is at least five days away for domestic flights and fifteen days for international flights.
The proposed rules, currently open for stakeholder feedback, are designed to address frequent passenger complaints over steep cancellation fees, refund delays, and lack of transparency in ticket pricing.
“This proposal aims to ensure greater transparency and passenger convenience by streamlining refund and cancellation processes,” DGCA Director General Faiz Ahmed Kidwai told The Times of India.
Key Highlights of the Proposed Policy
- 48-Hour Free Cancellation: Passengers can cancel or modify flight bookings within two days of purchase without incurring airline-imposed penalties. Only fare differences, if applicable, will be charged.
- 21-Day Refund Deadline: Airlines will be required to process refunds within 21 working days, including tickets booked through travel agents or third-party portals.
- Transparency in Charges: Airlines must clearly disclose cancellation and rescheduling fees before ticket purchase and will not be allowed to impose additional “processing” or “administrative” fees.
- Refund of Taxes and Fees: Passengers cancelling unused or partially used tickets will be eligible for refunds on all applicable taxes, including user development and airport service charges.
- Medical and Emergency Cancellations: In the event of medical emergencies or death of a passenger, airlines will be encouraged to provide full refunds or offer credit shells without penalty.
- Applicability to Foreign Airlines: The DGCA clarified that these rules will also apply to foreign carriers operating flights to and from India, ensuring uniformity across operators.
The move comes after growing dissatisfaction among travellers over high cancellation costs and delayed refunds, issues that surged during the pandemic period. Passenger-rights advocates have hailed the proposal as a progressive step toward improving consumer protection and restoring confidence in air travel.
A senior airline executive, quoted by The Economic Times, said that while the policy may require operational adjustments, it will “ultimately help build passenger trust and promote advance bookings.”
The DGCA has invited feedback from airlines, consumer bodies, and the public before finalising the rules. Once approved, the new provisions will be incorporated into the Civil Aviation Requirements (CAR) Section 3, Series M, Part IV, which governs refund and cancellation regulations in India.
Industry experts believe the initiative could bring India’s aviation consumer policies closer to global standards followed in the United States and Europe, where passengers are entitled to flexible cancellations and prompt refunds.
