Govt Mulls Reduction in Air Ticket Cancellation Fees

The move comes in wake of repeated complaints by passengers over high cancellation charges.

File photo of an IndiGo aircraft. (Photo: Reuters)

The government is looking to reduce cancellation charges for air tickets as it works on a host of new rules for airlines for the benefit of passengers, says a Hindustan Times report.

The government is of the view that the cancellation fee should not exceed the base fare, sources said.

Aviation regulator DGCA has already held discussions with most airlines on this issue. “Cancellation fees cannot include airport charges, service tax when the passenger hasn’t flown at all,” said an official.

The move comes in wake of repeated complaints by passengers. Currently, cancellation charges aren’t fixed, and range between Rs 1,500 and 100 percent of the fare, depending on class, price and time before departure.