Civil Aviation Ministry May Reform Airline Ticket Cancellation Policy!

In May 2018, the Civil Aviation Ministry had submitted a passenger draft to change the rules regarding cancellation of airline tickets.

The rules say that passengers can cancel a ticket for free within 24 hours of booking a flight and travel agents/airlines cannot levy cancellation charges which are more than the base price plus fuel surcharge.

The airline fraternity has pointed out a few shortcomings in these rules and is asking the ministry to reconsider the passenger draft.

Mr. Biji Eapen, National President of IATA Agents Association Of India, has written to the ministry saying that fuel charges cannot be a part of the cancellation charges. Any attempt to include this cost in the basic price, without merging both base fare and fuel charges together, is illegal and a violation of the law.

In fact, according to the “Aircraft Rules 1937”, base fare is the price of the airline ticket before adding the tax, fees and surcharge.

This is why Mr. Eapen has asked the ministry to review and amend the draft to specify that, airline ticket cancellation charges, under any circumstances, shouldn’t be more than the base fare.

Aviation analysts say that charging a cancellation fee more than the basic fare is quite illogical. This is because, the aircraft is not burning any fuel on the account of the passenger who has cancelled their ticket and only the basic price of the ticket should be refunded.

Airlines in India started adding fuel surcharge to basic airfares in 2005 on account of volatile fuel prices. Most airlines in the world include fuel cost in the original price of a ticket and add a fuel surcharge during the booking process.

The new norms are expected to be notified by 15^th July 2018, after the ministry analyses the public comments on the proposed charter.

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