**Executive Summary**
This document, issued by the Office of the Director General of Civil Aviation, details Civil Aviation Requirements (CAR) regarding airline ticket refunds for passengers. Effective May 22, 2008, the CAR aims to address grievances related to refund delays and practices. It specifies minimum refund requirements for all airlines operating to/from India.
**Key Points / Main Content**
* **Introduction:**
* Airline ticket refunds are a major source of passenger complaints, including delays, refund amounts, and restrictive adjustment policies.
* Government intervention is necessary due to persistent dissatisfaction, aiming to safeguard passenger interests.
* **Refund Requirements:**
* **Payment Method:** Credit card refunds must be processed within 7 days. Cash transaction refunds must be immediate.
* **Travel Agents:** Refund arrangements for tickets purchased through travel agents are to be agreed upon by the passenger and agent. The onus of the refund lies with the airlines who are responsible for travel agents.
* **Refund Timeframe:** Refunds for domestic travel tickets purchased through travel agents must be completed within 15 working days. For international travel, this timeframe is 30 working days.
* **Fees and Taxes:** Airlines must return PSF collected and refund all statutory taxes, UDF, ADF, and PSF, even for non-refundable fares. Any charges such as congestion charge, fuel surcharge, etc. should be refunded. The word 'tax' should not be used in place of charges or surcharges.
* **Future Travel:** Passengers must have the option for immediate refund of money when offered tickets for future travel. Holding the refund amount in a credit shell is only allowed with passenger consent.
* **Transparency:** Airlines must clearly indicate the amount of refund admissible on cancellation on the ticket or through a separate form, and on their website.
* **Lost Tickets:** Prompt action to refund the ticket amount is required after verification of records.
* **Cancellation Charges:** Cancellation charges cannot exceed the basic fare.
* **Processing Fees:** Airlines cannot levy additional charges for processing refunds.
* **Foreign Carriers:** Regulations of the origin country apply, with refund mode as per Para 3 (a),(b) & (c) of this CAR.
**Impact Analysis**
**Stakeholder: Airlines (including scheduled domestic/non-scheduled operators/foreign carriers operating to/from India)**
* **Impact:** They are required to adhere to the minimum refund requirements specified in the CAR. This includes processing refunds within stipulated timeframes, refunding all relevant taxes and fees, and providing transparent refund information to passengers.
* **Action Required:** They need to adjust their refund policies and systems to comply with the CAR, ensuring that their practices align with the minimum benchmarks set by the Government.
**Stakeholder: Passengers**
* **Impact:** Passengers are provided with greater protection and clarity regarding their rights to airline ticket refunds. This includes faster refund processing times, assurance of receiving applicable fees and taxes, and a more transparent understanding of refund policies.
* **Action Required:** Passengers should be aware of their rights as outlined in the CAR and hold airlines accountable for adhering to these requirements.
**Stakeholder: Travel Agents**
* **Impact:** Clarification around responsibility for ticket refunds.
* **Action Required:** Ensure awareness of CAR regarding refund policies and relay information to the customer clearly.
Key Entities Referenced
Civil Aviation Requirements (CAR): A document prescribing minimum requirements for refund of airline tickets purchased by passengers with respect to air transport.
Airlines: Entities providing air transport services and required to adhere to the refund policies outlined in the Civil Aviation Requirements (CAR).
Passengers: Members of the public who purchase airline tickets and are entitled to refunds under the conditions specified in the Civil Aviation Requirements (CAR).
Aircraft Rules: Refers to Rule 133A of the Aircraft Rules, the legal basis for the CAR on airline ticket refunds.
Office of the Director General of Civil Aviation: The issuing authority for the Civil Aviation Requirements (CAR) document.
GOVERNMENT OF INDIA
OFFICE OF THE DIRECTOR GENERAL OF CIVIL AVIATION
TECHNICAL CENTRE, OPP SAFDURJUNG AIRPORT, NEW DELHI
CIVIL AVIATION REQUIREMENTS
SECTION 3 – AIR TRANSPORT
SERIES ‘M’, PART II
ISSUE I, DATED 22 May, 2008 EFFECTIVE FORTHWITH
File No. 23-16/2016-AED
Subject: Refund of Airline Tickets to Passengers of Public Transport
Undertakings.
1. Introduction
1.1 The issue of refund of tickets by airlines has become a major source
of grievance amongst airline passengers. A large number of complaints are
regularly received which can broadly be divided into the following
categories:
a) Delay in refund of unused tickets.
b) The amount which is refunded by the airlines against cancelled tickets.
c) Policy of no refund of the ticket amount but to adjust against tickets to
be purchased by the passenger for future travel in the same airline that
too valid for a limited period of time.
1.2 While the Government is committed to no interference in the
commercial practices of the airlines, the volume of the complaints
necessitates some affirmative action to safeguard the interest of the
travelling public. The matter has been discussed in several meetings with
the airlines with no significant improvement in the system adopted by
airlines for refund of tickets. It is, therefore, now considered necessary
by Government to fix some minimum bench marks, as far as the refund
policy is concerned in order to stem the growing dissatisfaction among the
passengers regarding the refund procedures adopted by some airlines.
2. This CAR prescribes minimum requirements for refund of ticket
purchased by persons/passengers with respect to air transport
1undertakings including scheduled domestic/non-scheduled operators/
foreign carriers operating to/from India.
This CAR is issued in public interest as per Rule 133A of the Aircraft Rules
and Ministry of Civil Aviation Order No. AV 13030/105/2007-DT dated 12
May, 2008.
3. Requirements
a) In case of credit card payments, refund shall be made by the airlines
within seven days of the cancellation to the account of credit card
holder.
b) In case of cash transactions, refund shall be made immediately by
the airlines office from where the ticket was purchased.
c) In case of purchase of ticket through travel agents, the arrangement
for refund be left to the passenger and the travel agent. In case of
purchase of ticket through travel agent/portal, onus of refund shall lie
with the airlines as agents are their appointed representatives. The
airlines shall ensure that the refund process is completed within 15
working days in case of domestic travel and 30 working days in case
of international travel.
d) Airlines shall necessarily return the PSF collected by them from the
passengers on non-utilization/ cancellation of tickets. The airlines
shall refund all statutory taxes and User Development Fee
(UDF)/Airport Development Fee (ADF)/Passenger Service Fee
(PSF) to the passengers in case of cancellation/non-utilisation of
tickets/no show. This provision shall also be applicable for all types
of fares offered including promos/special fares and where the basic
fare is non-refundable.
e) Airlines shall refund any charges such as congestion charge, fuel
surcharge etc., alongwith the refund of the ticket, unless these are
clubbed with basic fares.
Note: For the charges, surcharges levied by the airlines, the word ‘tax’ or
‘taxes’ should not be used.
e) When being offered tickets for future travel, passengers shall be
allowed an option for refund of money instantly. The option of holding
the refund amount in credit shell by the airlines shall be the
prerogative of the passenger and not a default practice of the airline.
2f) The airlines should indicate in an unambiguous manner the amount
of refund of money admissible on cancellation of a ticket. For this
purpose, the amount and its break-up may be indicated on the ticket
itself or through separate form used for the purpose, and the policy
and amount of refund shall also be displayed by the airlines on their
respective websites.
g) In case of lost ticket coupons, the airlines shall take prompt action to
refund the ticket amount after verification from their records,
h) Under no circumstances, the airline shall levy cancellation charge
more than the basic fare.
i) The airlines shall not levy any additional charge to process the
refund.
j) Foreign carriers operating to/from India shall refund the tickets in
accordance with regulations of their country of origin. The mode of
refund shall be in accordance with Para 3 (a),(b) & (c) of this CAR.
(M. Sathiyavathy)
Director General Civil Aviation
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