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India’s Proposed 80% Refund for Last-Minute Flight Cancellations
In a major win for air travelers, the Indian government is drafting new rules that could mandate up to 80% refunds for last-minute flight cancellations. The Ministry of Civil Aviation is reviewing the policy to address passenger complaints and create fairer airline refund practices.
Current Refund Rules: Why Is Change Needed?
Currently, most Indian airlines offer:
– Zero or minimal refunds for cancellations within 24–48 hours of departure.
– Non-transparent policies, with some issuing only travel credits instead of cash.
Passengers often lose money due to emergencies, leading to widespread criticism. The DGCA has flagged these issues, pushing for reforms.
Key Features of the Proposed Policy
- Higher Refunds: Up to 80% back for cancellations within 24 hours.
- Tiered System:
- 90% refund for 48+ hour cancellations.
- 80% refund for <24-hour cancellations.
- Clear Disclosures: Airlines must display refund terms upfront.
- Strict Penalties: Fines for non-compliant carriers.
The rules will cover domestic and international flights by Indian airlines.
Airlines vs. Passengers: Who Wins?
- Airlines: Argue that last-minute cancellations hurt operations and may raise ticket prices.
- Passengers: Advocate for fairness, citing global precedents and emergency situations.
How India Compares Globally
- EU: Full refund within 24 hours if booked 7+ days early.
- US: 24-hour refund window for bookings made a week ahead.
- UAE: More flexible than India but lacks uniformity.
India’s 80% rule would bridge the gap with global standards.
Timeline & Next Steps
The policy is under stakeholder review and could take 6–12 months to finalize.
Traveler Tips Until Then
- ✔️ Compare airline policies before booking.
- ✔️ Buy flexible tickets if plans are uncertain.
- ✔️ Use travel insurance for cancellations.
Bottom Line
This reform could transform India’s aviation sector by prioritizing passenger rights. Stay tuned for DGCA updates—we’ll keep you informed!
What’s your take? Should airlines refund 80% for last-minute cancellations? Comment below!
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