"If a flight is cancelled and it is the airlines' fault, then the passenger has to be compensated or ticket has to be refunded. If a flight is delayed, the passenger will be compensated in various ways," he added.
While some airlines already provide this service, some do charge a fee for corrections.
The charter, however, will be binding on all airlines in the domestic sector. The charter has been placed in public domain and consultation process will be open for 30 days. The changes could be notified in two months after the consultation process, the government said.
The charter proposes that passengers would be compensated Rs 20,000 on missing connecting flights if the delay is over 12 hours, and Rs 10,000 if the delay is between 4-12 hours.