Setting a deadline for airlines to process a refund can avoid excessive delays in refunding money | Photo credit: BHAWIKA CHHABRA
The draft regulation recently published by the General Directorate of Civil Aviation on the refund of airline tickets in case of cancellation is a long overdue step that will provide relief to air travelers. About a fifth of the complaints received by the DGCA relate to delays in refunding funds on ticket cancellations, deduction of arbitrarily high amounts as cancellation fees and airlines offsetting the canceled flight ticket against future bookings.
The lack of transparency and standardization in this area has become a problem. The new rules, guided by global best practices, set the minimum standards airlines must meet when refunding canceled tickets and give airlines the ability to offer better terms if necessary. Given the intense competition among airlines, this should benefit customers. The most important provision is the introduction of a check-in facility of 48 hours from the time of booking the ticket, during which the passenger can cancel or change the ticket without any additional costs. This option is common around the world and helps in cases where travel plans suddenly change or there is an error in entering travel details when purchasing the ticket. The proposed regulation is better than regulations in the US and Europe, where passengers are given just 24 hours of check-in notice to cancel without penalty. In many countries, this option is only available if tickets are booked directly with the airline. However, the DGCA appears to cover tickets purchased directly through the airline as well as through travel agents.
The regulations address the lack of transparency by requiring airlines to indicate the refund amount in the event of cancellation and breach of contract on the ticket or on a form attached to the ticket. It’s also a good idea to ask airlines to display their refund policies prominently on their websites, as passengers can compare these policies between airlines. However, the maximum limit for cancellation fees is set at the basic fare and fuel surcharge. This is quite high since the airline can cover almost the entire cost of the ticket as a cancellation fee. This could have been reduced to around 80 percent of the basic tariff and the fuel surcharge, at least for cancellations 48 hours before the start of the trip, in order not to excessively disadvantage travelers. In most cases, especially on busy routes, airlines sell seats at a premium to those who book last minute. The probability that a place will become available due to a cancellation and therefore a loss will occur is minimal.
Setting a deadline for airlines to process a refund can avoid excessive delays in refunding money. . It is also pleasing that airlines are now obliged to ensure that the travel agency refunds the money within 21 working days in the event of a cancellation. When tickets are purchased through travel agents, customers tend to have more difficulty obtaining a refund as the travel agents blame the airlines and vice versa.
Published on November 9, 2025