New Aviation Policy reduces cancellation charges in India

A sigh of relief for air passengers

News - India & You


July 14, 2016

/ By / New Delhi

India & You

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The air passengers in India have something to cheer up, as the new civil aviation policy is coming into force from August 1. The revised policy caps the cancellation charges and bar airlines to levy additional changes.

The move was first proposed in June among the other passenger friendly reforms but would become effective from next month, the Civil Aviation Ministry announced.

Civil Aviation Minister Ashok Gajapathi Raju in a statement said “Cancellation amount not to exceed basic fare plus fuel surcharge; all statutory levies and taxes to be refunded under all circumstances,”

It was also made clear in the revised regulations that the airlines cannot levy the additional charges to process the refund.

The air carriers are directed to refund all statutory taxes and User Development Fee (UDF)/Airport Development Fee (ADF)/Passenger Service Fee (PSF) to the passengers in case of “cancellation/ non-utilisation of tickets/no show”.

The move definitely comes as a relief to the air passengers against the cancellations charges levied by different air carries in recent times. Deducting all the relevant taxes and refund a meagre amount.

The Directorate General of Civil Aviation (DGCA) explained, “This provision shall also be applicable for all types of fares offered including promos/special fares and where the basic fare is non-refundable,”

Putting a time frame for the refund process Raju in a tweet said that the process of refund would be completed in 30 days even the passenger has booked the ticket from a travel agent or from an online portal.

In a recent tweet he writes “Cancellation charges to be clearly displayed on every ticket. The policy to be prominently displayed on the website of the airline”

The new reform gives the air travellers all the rights to decide whether they want to get a refund or to hold the amount as credit with the airlines.

As a special provision for the people with disability, DGCA has directed airport operators to make special provisions for such people to board or deboard from a flight without inconvenience.

These new reforms seems to have a pro-passenger outlook and would boost the moral of the air travellers. However, more reforms of these kinds are needed to encourage more and more people to travel by air.

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