Explain hike in cancellation fees: DGCA to airlines

The Directorate General of Civil Aviation (DGCA) has sought an explanation from airlines regarding the increase in cancellation charges.

This comes after market leader IndiGo decided to charge Rs 2,250 as cancellation fee for domestic flight tickets.

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"Not just IndiGo, we've written to all airlines asking if there is a reason to increase cancellation charges when fuel prices are low," said an official with DGCA.

Earlier, IndiGo used to levy a fee of Rs 2,250 in case of date change or cancellation of ticket within seven days of departure. For changes beyond seven days, the levy was Rs 1,900. Now, a flat fee of Rs 2,250 would be collected, irrespective of the date.

According to travel agents, when the market leader increases cancellation fees, other airlines will follow suit.

"On the one hand, airlines complain of increase in aviation fuel price when it is benign and then they do such customer-unfriendly practices," said D Sudhakar Reddy, president of the Air Passengers' Association of India.

Reddy said they might approach the Competition Commission of India if this practice is continued. "This is being done by the airlines as a cartel."

Cancellation fees acts as a source of ancillary revenue for the airlines.