New draft norms aim to enhance passenger rights, simplify refunds, and make airlines more accountable for travel agent bookings
New Delhi (Economy India): India’s aviation regulator, the Directorate General of Civil Aviation (DGCA), has proposed sweeping reforms in passenger ticket refund and cancellation policies. Under the new draft norms, air passengers may soon be allowed to cancel or modify their flight bookings within 48 hours of purchase — without any extra charge.
The proposal, released for public feedback, seeks to strengthen consumer protection in India’s fast-expanding aviation market, where refund delays, hidden charges, and booking complications through travel portals have been long-standing grievances.
Key Proposal: 48-Hour Free Cancellation
The DGCA’s draft amendment introduces a mandatory 48-hour “grace period” from the time of ticket booking. During this window, passengers can cancel or modify their bookings without incurring any penalty.
This move aligns India’s air travel policies with global best practices, especially in the U.S. and the EU, where such customer-friendly provisions are already in place.
“The proposed change aims to balance consumer convenience and airline operational flexibility,” a senior DGCA official said.
“The aviation sector has become highly dynamic post-pandemic, and fair refund mechanisms are essential for building passenger confidence.”
Accountability for Tickets Booked via Travel Agents
In a significant step, the DGCA has also proposed that airlines themselves will be responsible for refunds even when passengers book through travel agents or online portals.
The regulator clarified that travel agents act as “appointed representatives” of airlines, and therefore, refund responsibility cannot be transferred or delayed.
This provision is expected to streamline refund disputes — a major source of passenger complaints during flight cancellations or schedule changes.
“This will close the loophole that allows airlines and agents to pass blame during refund delays,” said Ankur Bhatia, an aviation policy analyst. “Passengers will finally have a single point of accountability.”
Growing Complaints and Consumer Pressure
The DGCA’s initiative follows an increase in passenger complaints regarding refund delays, excessive cancellation fees, and opaque refund timelines, particularly during the post-COVID travel surge.
According to official data, refund-related grievances accounted for nearly one-third of all passenger complaints received by airlines in FY2024–25.
The new draft rules seek to ensure that all refund processes are initiated automatically upon ticket cancellation and that passengers receive refunds within a defined period, likely within seven working days.
Provisions to Benefit Both Passengers and Airlines
While the proposed changes favor passengers, DGCA officials believe that airlines will also benefit from a clear, uniform regulatory framework, reducing disputes and improving transparency.
With India’s domestic aviation market expected to cross 400 million passengers annually by 2030, predictable refund policies are seen as critical for sustaining growth and customer trust.
Comparison with Global Practices
Globally, several aviation regulators have established similar “cooling-off” periods:
- United States: Passengers can cancel flight bookings within 24 hours of purchase for a full refund.
- European Union: Airlines must refund within seven days of cancellation, and any schedule change exceeding two hours qualifies for free cancellation.
- Singapore & UAE: Some carriers voluntarily offer 48-hour or 72-hour flexible cancellation policies.
DGCA’s move is aimed at aligning India’s aviation framework with these international consumer standards.
Travel Industry Response
The proposed changes have drawn mixed reactions from the airline industry and travel portals.
While passenger rights groups have welcomed the initiative, airlines are concerned about potential revenue uncertainty and system integration costs.
“Airlines will need to reconfigure booking engines and revenue management systems to accommodate free cancellation windows,” said a senior airline executive, requesting anonymity.
“However, in the long run, this could enhance trust and improve repeat bookings.”
Online travel portals like MakeMyTrip and Yatra are expected to hold consultations with DGCA to clarify their operational responsibilities under the new framework.
Passenger Rights Strengthened
If implemented, the new rules will mark one of the most consumer-centric reforms in Indian aviation in recent years.
Key rights that passengers will enjoy under the revised framework include:
- 48-hour free cancellation or modification window after booking.
- Full refund responsibility on airlines — even for agent or portal bookings.
- Mandatory refund timeline, expected to be within 7 working days.
- Transparency in fare breakdowns to eliminate hidden charges.
- Stricter penalties for airlines that fail to comply with refund obligations.
These provisions could also be integrated into the Passenger Charter maintained by the DGCA, which outlines compensation norms for flight delays, cancellations, and boarding denials.
Industry Outlook
Analysts believe that the DGCA’s proposals reflect India’s evolution toward a more mature aviation market. With rising digital ticketing and increasing passenger expectations, regulatory clarity around refunds is seen as essential.
The proposals are currently open for public consultation, after which the DGCA may finalize the rules later this fiscal year.
Airlines and industry stakeholders are expected to submit feedback within 30 days of the draft’s publication.
“These changes will bring India closer to global norms and improve its reputation for passenger-friendly aviation practices,” said Aditi Deshmukh, an independent consumer rights expert.
The DGCA’s proposed reforms signal a strong commitment to improving passenger experience, transparency, and trust in India’s booming aviation sector.
By making refunds faster, simpler, and more accountable, the new rules aim to create a win-win framework — empowering passengers while supporting sustainable airline growth.
Once implemented, these measures could set a new benchmark for consumer protection across the travel and tourism ecosystem in India.
(Economy India)
