DGCA’s New Refund Rules: No More Losing Money on Flight Cancellations

Air travellers may soon enjoy far more flexibility and transparency when cancelling or modifying their flight tickets. The Directorate General of Civil Aviation (DGCA) has released a new draft proposal that requires airlines to process timely refunds, offer a 48-hour free “look-in window” for cancellations or changes, and clearly disclose all cancellation charges upfront.

The move comes amid rising complaints about delayed refunds, forced credit shells, and high cancellation penalties. The draft, issued by DGCA chief Faiz Ahmed Kidwai, is open for public feedback until November 30, and aims to bring uniformity, fairness, and greater passenger protection.

What Is the 48-Hour “Look-In Window”?

The proposed “look-in window” is a game-changer for travellers who book early or make mistakes during online bookings. Here’s how it works:

✔ 48-Hour Flexibility

  • Passengers can cancel or modify their tickets within 48 hours of booking without any cancellation charges.
  • If modifying, only the fare difference will apply.

✔ Applies to Advance Bookings

  • Eligible only when the flight is:
    • At least 5 days away (Domestic flights)
    • At least 15 days away (International flights)

✔ Only for Direct Airline Bookings

  • This benefit applies only to tickets booked directly on the airline’s website, app, or counters.

✔ Designed to Prevent Penalties for Mistakes

  • Many flyers accidentally enter the wrong date or misspell names.
  • The look-in window ensures they can fix such mistakes without financial loss.

What Else Might Change Under the New DGCA Rules?

1. Free Name Corrections Within 24 Hours

  • Airlines cannot charge for fixing minor spelling errors in the passenger’s name if corrected within 24 hours of booking.

2. Clear, Time-Bound Refund Rules

The DGCA sets strict refund timelines to end unnecessary delays:

  • Credit card bookings: Refund within 7 days
  • Cash bookings: Refund immediately at the point of purchase
  • Bookings via travel agents or online portals: Refund within 21 working days

This rule applies even when tickets are booked through intermediaries, solving a common pain point for customers.

3. Transparent & Capped Cancellation Fees

To prevent hidden charges and overpricing, airlines must:

  • Display cancellation fees upfront
  • Cap cancellation charges to basic fare + fuel surcharge
  • Follow these caps even for non-refundable or promotional fares

This ensures passengers are no longer hit with arbitrary or exorbitant penalties.

4. Foreign Airlines Must Follow Indian Refund Rules

International carriers operating in India will have to comply with both:

  • Their home country refund norms, and
  • DGCA’s Civil Aviation Requirement (CAR) on refunds, including the 21-day timeline

5. Special Provisions for Medical Emergencies

In cases of serious medical emergencies for passengers or immediate family members:

  • Travellers can choose either a full refund
    or
  • A credit shell for future travel

This adds flexibility for families facing unexpected crises.


Why Is DGCA Introducing These Reforms?

The DGCA notes a sharp rise in passenger grievances, including:

  • Delayed refunds
  • Partial reimbursements
  • Restrictive credit shells with short validity
  • Opaque cancellation charges

While maintaining that it does not seek to interfere unnecessarily with airline business practices, the DGCA stresses that affirmative action is essential to uphold passenger rights.

What This Means for Travellers

If the draft regulation is approved:

  • Cancelling a flight won’t mean losing your money.
  • Refund processes will be faster, clearer, and enforceable.
  • Early-booking travellers will get a 48-hour safety cushion.
  • Airlines will be more accountable and transparent.

These reforms could significantly reshape India’s air travel experience, making it more consumer-friendly and fair.

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