Hike in ticket cancellation rates: DGCA enquiring; CCI probe

Aviation regulator DGCA is looking into the steep hike in ticket cancellation charges by airlines even as the flyers lobby, Air Passengers Association of India (APAI), said it would approach the anti-competition watchdog on the issue, alleging cartelisation.

Three domestic carrier -- IndiGo, Jet Airways and SpiceJet -- have unilaterally revised upward their ticket cancellation fee in the recent past.

"We are looking into the hike in ticket cancellation charges by the airlines," DGCA sources said.

"Cancellation charges, in any case, should not be more than the ticket prices and so the airlines should keep these charges within those limits," they said adding that the airlines need to rationalise such charges.

Budget carrier SpiceJet yesterday raised ticket cancellation charges for both domestic as well as international travel.

According to the revised fee, which is effective from yesterday, the airline would now deduct Rs 1,800 as cancellation fee for a domestic ticket while calling off an international booking would be charged Rs 2,250.

Earlier, no-frills airline IndiGo and full-service carrier Jet Airways, too, had massively hiked such charges.

IndiGo's cancellation charges range between Rs 1,250 and Rs 2,250, depending on the number of days left before the scheduled departure. The minimum cancellation charges which have been pegged at Rs 1,250 are applicable only if the ticket has been cancelled one month or more before the date of departure.

Jet Airways' ticket cancellation charges range between Rs 500 and Rs 2,750, depending on the class of fare.

APAI president Sudhakar Reddy said he would soon approach Competition Commission of India on the issue, alleging "cartelisation" by the airlines on this issue too.

"Earlier, airlines would hike or lower their fares in tandem. Now they are doing the same in the matter of cancellation. This is also a cartelisation. I am writing to the CCI to investigate these airline shortly ," Reddy said.