DGCA Proposes 48-Hour Free Cancellation Window for Air Tickets — No Extra Fees for Amendments or Refunds

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In a major step toward enhancing passenger rights and transparency, India’s aviation regulator, the Directorate General of Civil Aviation (DGCA), has proposed introducing a 48-hour “look-in” window allowing passengers to cancel or modify flight tickets without incurring extra charges.

The draft regulation, accessed by The Economic Times, comes after the DGCA received a surge in complaints from passengers regarding refund delays, high cancellation fees, and restrictive airline policies on ticket adjustments and refunds.

The DGCA has invited public feedback on the proposal until November 30, after which a final decision will be made.


Key Highlights of the Proposal

Here are the major reforms proposed under the DGCA draft policy:

1. 48-Hour No-Fee Window:
After booking, passengers will have 48 hours to cancel or alter their tickets without any additional charges.

  1. Exceptions Based on Departure Date:
    The rule will not apply to flights departing within 5 days (domestic) or 15 days (international) from the booking date.
  2. Name Corrections Free of Cost:
    Airlines will be barred from charging passengers for spelling corrections in names.
  3. Refund Timelines:
    • Credit Card Payments: Refunds must be processed within 7 days of cancellation.
    • Cash Payments: Refunds must be issued immediately at the point of purchase.
    • Tickets via Agents: Refunds must be processed within 21 working days, and airlines will bear the responsibility since agents act as their representatives.
  4. Refund of Fees and Taxes:
    Even in cases of no-shows or cancellations, airlines must refund taxes and service fees such as User Development Fee (UDF), Airport Development Fee (ADF), and Passenger Service Fee (PSF).

Why This Matters

The DGCA said the proposal aims to bring fairness to air travel policies and protect consumers from hidden costs and arbitrary airline practices.

According to officials, the majority of complaints were linked to airlines refusing full refunds and instead offering limited-time credits or vouchers for future travel — a practice the DGCA seeks to regulate more strictly.

“The objective is to ensure passengers have flexibility and confidence while booking air tickets,” a DGCA spokesperson said.

If approved, the reform will align India’s passenger protection norms more closely with global aviation standards, such as the U.S. Department of Transportation’s 24-hour free cancellation rule.

Airlines, meanwhile, are expected to provide their input on the operational and financial implications of the proposal during the public consultation phase.

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