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The new, more transparent airline ticket refunds are under new rules issued by the Ministry of Civil Aviation, which will greatly benefit Indian air passengers.
These new rules allow passengers to cancel or change air tickets without paying anything extra within 48 hours of booking, subject to certain conditions, as the DGCA revised the ticket refund norms for airlines.
As stated by the DGCA, any additional amount should not be charged by the airlines to correct the name for the same person when the error is reported within 24 hours of booking, provided the ticket was booked through the airline's website.
The Civil Aviation Requirement, effective immediately, sets clear timelines and obligations for airlines operating domestic and international flights to and from India.
CAR Minimum Requirements
If a ticket is bought with credit card payments, the airline is entitled to refund the credit card holder within a week of the cancellation to the account associated with the credit card. When the transaction is done in cash, the refund shall be made immediately by the airline's office from where the ticket was purchased.
If the air tickets are booked by a travel agent or portal, the refund shall be made by the airlines, as agents are their representatives. The airlines shall guarantee that the entire process is completed within 14 working days.
It is mandatory for an airline to provide a "Look-in option" for 48 hours after the ticket is booked. During this period, passengers can cancel or amend the ticket without paying any extra amount, except the normal prevailing fare for the revised flight to which the ticket is amended.
This facility is not available for flights departing within a week for domestic or 15 days for international travel from the booking date when tickets are booked through an airline's website.
After 2 days from booking, this option is no longer available, and the relevant cancellation fees apply to amendments.
It is the passenger's choice, not the airline's default practice, to hold the refund amount in a credit shell. The airline shall refund all taxes to the passengers in case of cancellation/non-utilizations of tickets/no-show. This shall also apply to all types of fares, including promos/special fares and non-refundable basic fares.
According to the circular, the airlines should clearly specify the refund amount allowable on ticket cancellation. The amount and its break-up might be shown on the ticket or a separate form. The refund policy and refund amount should also be displayed on the airline's website. Cancellation charges must be indicated at the time of booking.
The cancellation fees should not exceed the basic fare plus fuel surcharge. This excludes any charges charged by the travel agent, which should be disclosed at booking. The airline should ensure this through contracts with travel agents and portals.
Source: NDTV
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