India's Directorate General of Civil Aviation (DGCA) has unveiled a draft policy aiming to reform airline ticket cancellation regulations, with the goal of improving passenger experience. The proposed guidelines, currently open for public feedback, include eliminating cancellation fees for bookings made within 48 hours, provided the flights meet specific advance notice requirements—domestic flights departing more than five days later and international flights booked at least 15 days ahead.
These reforms intend to streamline the cancellation process, promote transparency, and enable faster refunds. Under the draft, credit card refunds will be processed within seven days, cash refunds will be immediate, and travel agent bookings could take up to 21 working days. The policy also emphasizes refunding taxes and airport fees fully and requiring airlines to clearly display refund policies during the booking process.
Additional provisions include allowing name corrections within 24 hours at no extra charge and providing refunds or credit shells for medical emergencies. Importantly, credit shells will not be automatically issued; passengers must opt to retain them. The new rules apply equally to foreign airlines operating in India, ensuring uniform consumer protection standards across the industry. Industry stakeholders have generally supported the move, viewing it as a significant step towards a more passenger-centric aviation sector.
If adopted, these policies are expected to reduce passenger frustrations related to high fees and sluggish refunds, setting a new industry benchmark. The DGCA aims to create a more flexible, transparent, and customer-focused environment that could influence international aviation standards in the future.
