According to the draft norms, airlines must process credit card refunds within seven days of cancellation, while cash refunds must be made immediately at the airline’s office
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SRINATH M
India’s aviation regulator has proposed a sweeping overhaul of airline ticket refund and cancellation norms.
Accordingly, the Directorate General of Civil Aviation (DGCA) has outlined a framework aimed at addressing long-standing passenger grievances over high cancellation charges, opaque fare structures, and delayed refunds.
“This Civil Aviation Requirement (CAR) seeks to bring transparency to the process of ticket cancellations and refunds and to ensure that passengers are not subjected to unreasonable deductions,” the draft CAR on ‘Refunds of Airline Tickets to Passengers of Air Transport Undertakings’reads.
Notably, the document has been released for public consultation.
Among the far-reaching measures, the DGCA has proposed that passengers be entitled to a 48-hour “look-in” period after booking a ticket.
This would allow passengers to cancel or modify their reservation without any additional charge — except for applicable fare differences — during that window.
In another major step, the DGCA has proposed capping airline cancellation fees, stating that under no circumstances can airlines or their agents charge more than the basic fare plus the fuel surcharge.
Besides, any additional levy by travel agents must be fully disclosed at the time of booking, the draft stated.
According to the draft, airlines must process credit card refunds within seven days of cancellation, while cash refunds must be made immediately at the airline’s office.
Furthermore, refunds for tickets purchased through travel agents or online portals must be completed within 21 working days.
As per the regulator’s proposal, all statutory taxes, including the User Development Fee and Passenger Service Fee, must be refunded in case of cancellations or no-shows.
In addition, the regulator has proposed that airlines cannot impose extra fees for processing refunds or correcting a passenger’s name within 24 hours of booking.
Additionally, refunds or credit shells will also be permitted in medical emergencies, but only at the passenger’s discretion.
The DGCA said that feedback from stakeholders on the draft norms will be considered before the final notification is issued.
Published on November 4, 2025
