Govt proposes curbs on airline ticket cancellation charge, excess baggage fee

The government has proposing a cap on ticket cancellation charges, increased compensation for denied boarding and steep reduction in excess baggage fee levied by airlines in what could be a great relief to air passengers.

The civil aviation ministry said airlines will have to refund all statutory taxes in case of flight cancellations.

Aviation regulator DGCA has proposed that "under no circumstances the cancellation charges be more than the basic fare" and carriers cannot levy additional charge to process the refund.

In case of checked-in baggage, the airlines would be charging Rs100 per kg for baggage weight in excess of 15 kg till 20 kg. At present, Rs300 is levied on every kg of baggage beyond the 15-kg limit.

Only Air India allows free baggage up to 23 kg.

With regard to denied boarding, mainly due to overbooking, the government has proposed compensation up to Rs20,000 subject to certain conditions.

"In case the passenger does not opt for an alternative flight, refund of full value of ticket and compensation equal to 400 per cent of booked one-way basic fare plus airline fuel charge, subject to maximum of Rs 20,000 will be given," the regulator said.

According to the watchdog, no compensation would be paid if a passenger is informed about the cancellation at least two weeks before the scheduled departure and if the airline has arranged another flight depending on the passenger's convenience.

This would be applicable, subject to conditions, even on instances where the cancellation has been informed less than two weeks and up to 24 hours before the scheduled departure.

In such a case, there would be no compensation if the carrier has arranged alternative flight scheduled to depart within two hours of their booked scheduled departure.

In cancellations, the financial compensation would be Rs 5,000 or booked one-way basic fare plus airline fuel charge, whichever is less, for flights having a block time of up to one hour. This quantum would be Rs 7,500 in case of flights having a block time of one to two hours.

For flights having a block time of more than two hours, the financial compensation would go up to Rs 10,000.

Besides, the ministry has proposed measures to help passengers with reduced mobility.

Civil aviation minister Ashok Gajapathi Raju said the measures are being proposed as there have been complaints from passengers that issues are not getting resolved within a reasonable time.

To bring in the new measures, the DGCA has suggested changes to three civil aviation requirements and to an air transport circular. They would be put up for public consultations before taking a final decision.