Starting from August 1, the new cancellation regulations on air fare refund will become effective.
The process of refund will be completed within 30 days for the tickets booked through travel agents or online portal.
Cancellations not exceeding basic fares including fuel recharge and all statutory levies will be refunded under all circumstances.
It is up to passengers to decide whether to get refund or hold the amount in credit holding.
The cancellation charges will be clearly displayed on every ticket and it will be prominently displayed on the website of the airline.
The airlines have been barred from putting additional charges for corrections in errors of names of the passengers.
No additional charge can be levied to process the refund.
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Last month, Ministry of Civil Aviation had proposed passenger centric adjustments including a cap on cancellation charges, enhanced compensation for denying boarding by the airline and a massive reduction in fee for carrying five kg extra baggage in an aircraft.
Minister for Civil Aviation Ashok Gajapathi Raju had said that his Ministry was committed not only to the growth of the Airline industry but also to ensure that flying for most Indians becomes a pleasant experience.