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Monday, 8 August 2016

Revised civil aviation rules: Cancellation fee not more than base fare + fuel levy

New Delhi: In a significant relief to fliers, the Directorate General of Civil Aviation has capped ticket cancellation charges and barred airlines from levying additional amount for refund process. In the new rules effective from August 1, the regulator said airlines cannot levy cancellation charges of more than the basic fare plus fuel surcharge.
Airlines have also been mandated to 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 or no show”.
“This provision (of refunding statutory taxes) shall also be applicable for all types of fares offered including promos/special fares and where the basic fare is non-refundable,” the DGCA said. As per the existing rules, carriers were required to refund only PSF collected by them in case of cancellation.

In the cancellation rules first proposed by the Ministry of Civil Aviation last month, the government had capped airlines’ cancellation charges at the base fare, but in final rules notified on Tuesday, the carriers can also deduct fuel surcharge. The new rules kicked in with the issuance of revised Civil Aviation Requirement (CAR) by DGCA chief M Sathiyavathy on Tuesday.
Low-cost carrier SpiceJet, for instance, levies a fee of Rs 2,250 per passenger per sector per change for any change/cancellation. IndiGo also levies charges of Rs 2,250 for any change/cancellation up to 2 hours before scheduled departure and more than 4 hours for international flights.
These cancellation charges are now set to drop to the level of base fare plus fuel surcharge and the airlines will have to refund all statutory taxes.
To Read the News in Full 14/07/16 Indian Express
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