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Civil Aviation Sector – CA Policy 2016, UDAN, Open Skies, etc.

DGCA Revises Airfare Refund and Cancellation Rules

Why in the News

The Directorate General of Civil Aviation has revised airfare refund and cancellation rules to address rising passenger grievances. The new rules will come into effect from March 26, 2026.

Why the Changes Were Introduced

  • DGCA stated that refund related complaints have become a major source of grievance, including:
    • Delayed refunds
    • Airlines adjusting refunds against future travel
    • Disputes over refund value

Key Changes in the New Rules

1. Faster Refunds for Agent Bookings

  • Earlier: 30 working days
  • Now: 14 working days
  • Applies to tickets booked through travel agents and online portals.

2. Extended “Look-In” Period

  • The “look-in” period allows cancellation or amendment without charge.
  • Earlier: 24 hours
  • Now: 48 hours
  • However, conditions changed:
  • Must be booked at least:
    • 7 days before departure for domestic flights
    • 15 days before departure for international flights
  • Applies only to tickets booked directly via airline websites.
  • Not automatically applicable for bookings via agents or portals.

3. Name Correction Window

  • Free correction allowed within 24 hours.
  • Now applies only if ticket is booked directly through airline website.
  • Bookings via agents may attract charges even within 24 hours.

4. New Medical Emergency Clause

  • Refund or credit shell allowed in case of:
    • Hospitalisation of passenger
    • Hospitalisation of family member on same PNR
  • For other medical cases:
    • Refund subject to medical fitness certification from an airline aerospace medicine specialist or DGCA empanelled expert.

What Remains Unchanged

  • Most other refund provisions remain the same.
  • Government maintains non interference in airline commercial pricing.
  • Benchmarks fixed to protect consumer interest.

Prelims Pointers

  • DGCA functions under Ministry of Civil Aviation.
  • It regulates safety, licensing and consumer standards in aviation.
  • “Look-in” period allows free cancellation within a limited time after booking.
  • Refund timelines are now 14 working days for agent bookings.
  • Medical emergency clause newly introduced in 2026 revision.
[2025] With reference to the Government of India, consider the following information: Organization : Some of its functions : It works under 

I. Directorate of Enforcement : Enforcement of the Fugitive Economic Offenders Act, 2018 : Internal Security Division–I, Ministry of Home Affairs 

II. Directorate of Revenue Intelligence : Enforces the provisions of the Customs Act, 1962 : Department of Revenue, Ministry of Finance 

III. Directorate General of Systems and Data Management : Carrying out big data analytics to assist tax officers for better policy and nabbing tax evaders : Department of Revenue, Ministry of Finance 

In how many of the above rows is the information correctly matched?

(a) Only one (b) Only two (c) All three (d) None

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