Free flight cancellations within 48 hours likely in regulatory reforms

Regulator invites public feedback till November 30 before finalising new refund rules for airlines

The aviation regulator proposes to change rules for flight ticket refunds, seeking to make the process transparent, faster and fairer for passengers.

 

Passengers who book tickets through an airline’s website will get 48 hours to cancel or amend without extra charges. Only the fare difference for a rescheduled flight, if any, will apply, according to the Directorate General of Civil Aviation (DGCA).

This facility won’t apply to:

• Domestic flights departing within five days of booking. 
• International flights departing within fifteen days of booking. 
• After this 48-hour window, the usual cancellation fees will be applicable.

 

Faster, fairer refunds

 

The DGCA draft prescribes strict timelines for refunds based on the mode of payment:

 

Credit card bookings: Refunds within seven days of cancellation.

 

Cash transactions: Refunds to be made immediately from the airline’s office.

 

Tickets via agents or portals: Airlines remain responsible for refunds, which must be processed within 21 working days.

 

The proposal also makes it mandatory for airlines to refund all statutory taxes and airport charges, even for non-refundable or promotional fares.

 

Passenger-friendly safeguards

To ensure transparency and fairness, the DGCA has outlined several consumer-centric provisions:

 

• No fee for correcting name spellings if notified within 24 hours of booking.
• Cap on cancellation charges – they cannot exceed the basic fare plus fuel surcharge.
• No extra processing fee for handling refunds.
• Refunds or credit shells to be offered for cancellations due to medical emergencies.
• Clear display of refund policies and cancellation charges at the time of booking.

 

Why this matters

 

The DGCA said it regularly receives complaints about delayed or partial refunds, non-refund of taxes, and credit shell misuse by airlines. Its proposals aim to establish standards for refunds and curb arbitrary practices.

 

Once finalised, these norms are expected to bring greater accountability to airlines and relief to passengers struggling with opaque and inconsistent refund systems.

 

Public comments can be sent to the DGCA at bksingh.dgca@gov.in until 30 November 2025.