Union Cabinet in India approves consumer friendly Aviation Policy

Published on : Wednesday, June 15, 2016

FlightThe new Civil Aviation Policy in India is going to make flight bookings simpler and easier to a great extent. The discrimination in the policy of several domestic airlines led to the launch of this new set of aviation policies, regarding refund and flight cancellation and fares.



The new policy decided a cap of Rs.1200 for the flights of below 30minutes duration and a cap of Rs. 2500 has been decided for 60minutes-flight. The previous rule has been relaxed by the Government, which used to allow airlines with five years of experience and more than 20 flights to fly abroad.



The airlines have to make sure that passengers get their refund within 15 days of ticket cancellation. If the airlines cancel flights within 24hours of the departure, they must pay compensation amount of up to Rs.10000.The policy also pointed out that all the airlines have to refund the fare after the flight cancellation, even if the consumer buys the ticket in a promotional or special rate.



The new policy aims to establish an eco-system by 2022 to handle 300M domestic passengers. It also seeks to handle 500M domestic travellers and 200M international travellers by the end of 2027.



The policy was unveiled in November’14 as a draft by the NDA government. The draft got replaced later with an updated draft in October’15.



Since January’15, Jet Airways initiated a zero penalty rule for flight cancellation before 24hours of the departure, if the reservation is made via their official website or mobile-app.



Sharat Dhall, President of Yatra.com said, “The long-awaited new civil aviation policy has some path breaking changes that should unlock regional connectivity as well as open up opportunities for carriers entering the Indian market. The abolition of the 5/20 rule has come as a respite to many of the carriers that have entered the market in the last few years and enable them to expand their services internationally now. By subsidizing the shorter domestic routes for the airlines, the government has given a strong push to regional connectivity by capping fares and thereby expanding the market. A cap of Rs 1200 for 30 min flights and Rs 2500 for 1 hour flights should really drive growth in a hugely under-penetrated domestic air market and catalyse economic growth in tier 2 and tier 3 markets.”



The new aviation policy will make air-travel way more passenger friendly, after the policy will be implemented from 1st July.

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