No additional charges if you cancel air ticket within 48 hours of booking: How airline watchdog’s new refund policy may impact you
All the revised rules are as follows-
Rules for air tickets booked through credit card
Among other rules, in case of credit card payments, refunds shall be made by the airlines within seven days of the cancellation to the account of the credit card holder.
Rules for air tickets booked through cash transactions
In case of cash transactions, refund shall be made immediately by the airline’s office from where the ticket was purchased.
Rules for air tickets booked through travel agent
In case of the purchase of a ticket through a travel agent/portal, the onus of refund shall lie with the airlines as agents are their appointed representatives. The airlines shall ensure that the refund process is completed within 14 working days.
Also read: 16 large financial transactions you can’t hide from Income Tax Department: Deposit, withdrawal, cash payments and more
Rules for refunds of user development fee
The airlines shall 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. This provision shall also be applicable for all types of fares offered including promos/special fares and where the basic fare is non-refundable.
48-hour look-in option
As per the revised rules, the airline shall provide a “Look-in option” for a period of 48 hours after booking a ticket. During this period, a passenger can cancel or amend the ticket without any additional charges, except for the normal prevailing fare for the revised flight for which the ticket is sought to be amended.
This facility shall not be available for a flight whose departure is less than 7 days for domestic flight and 15 days for international flight from the booking date when the ticket is booked directly through the airline website. Beyond 48 hours of initial booking time, this option is not available and the passenger has to pay the relevant cancellation fees for amendment.
Rule for holding refund in credit
The option of holding the refund amount in a credit shell by the airlines shall be the prerogative of the passenger and not a default practice of the airline, as per the revised rules.
Cancellation charges limit
Under no circumstances, the airline or its agent shall levy cancellation charge more than the basic fare plus fuel surcharge. This will exclude any charges levied by the travel agent, which have been fully disclosed at the time of booking. It shall be the responsibility of the airline to ensure this through their contracts with travel agents/portals.
DGCA further says an airline should indicate in an unambiguous manner the amount of refund of money admissible on cancellation of a ticket.
For this purpose, the amount and its break-up may be indicated on the ticket itself or through a separate form used for the purpose, and the policy and amount of refund shall also be displayed by the airlines on their respective websites, says the watchdog.
DGCA also says cancellation charges of an air ticket must be indicated prominently at the time of booking.
