Airlines have hiked ticket cancellation charges: Union minister

Charges vary from Rs 1,500 to 100% fare of ticket depending upon class, price level, time before departure

An analysis has showed that there has been an increase in cancellation charges for air tickets, Union Minister Mahesh Sharma said Thursday while emphasising that airfares are not regulated by the government.

In a written reply to Lok Sabha, he said cancellation charges are not fixed and varies from Rs 1,500 to 100% fare of the ticket depending upon the class, price level and time before departure.

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"Analysis on the increase of the cancellation charge was carried out and it was found that there was increase in cancellation charges. Cancellation charges are not fixed," Sharma said.

The Minister of State for Civil Aviation was responding to a query on whether the ministry has taken note of steep hike in cancellation charges by airlines.

However, he did not provide details on whether aviation regulator The Directorate General of Civil Aviation (DGCA) has taken any action on the matter.

"Airfares are not regulated by the government. With the repeal of Air Corporation Act in March 1994, the provision of fare approval was dispensed with by the government, including charges for cancellation," Sharma said.

In recent times, many local carriers have increased the charges for cancellation of air tickets.

Last month, taking note of domestic airlines increasing ticket cancellation fees by a significant amount, aviation regulator DGCA last month sought an "explanation" from the carriers on the rationale for such a steep hike.