The DGCA has issued Civil Aviation Requirements (CAR), Section 3 – Air Transport, Series M, Part II, prescribing minimum standards for the refund of airline tickets. The framework has been introduced in response to increasing passenger grievances relating to delayed or denied refunds, and seeks to standardise airline practices while safeguarding consumer interests.
The CAR mandates time-bound refund processing, including refunds within 7 days for credit card transactions and immediate refunds for cash purchases, with a 14-day timeline applicable where bookings are made through travel agents or online portals (with responsibility remaining on the airline). It further requires airlines to refund all statutory taxes irrespective of fare type, caps cancellation charges at the basic fare plus fuel surcharge, and prohibits additional fees for refund processing. Additional provisions include a 48-hour no- penalty cancellation window (subject to certain conditions), optional credit shells at the passenger’s discretion, and limited waivers in cases such as medical emergencies and minor booking errors.
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