The Director General of Civil Aviation, on 24 February 2026, issued new Civil Aviation Requirements mandating faster refund processing and a 48-hour free cancellation window for all airline tickets in India. The requirements, issued under the Aircraft Act, 1934 and Aircraft Rules, 1937, will come into effect on 26 March 2026, strengthening the regulatory framework for passenger rights in civil aviation.
Background
Airline refund disputes have been a persistent source of consumer grievance in Indian civil aviation. Passengers have frequently faced delays in receiving refunds for cancelled flights, with processing times often extending to several weeks or months. The issue became particularly acute during periods of mass cancellations, when airline cash flow constraints led to significant delays in honouring refund obligations.
The DGCA, as the regulatory authority governing civil aviation operations in India under the Aircraft Act, 1934, exercises the power to issue Civil Aviation Requirements that are binding on all scheduled and non-scheduled airline operators. The present requirements represent a targeted intervention to address systemic deficiencies in the refund process.
Prior to this notification, the refund framework relied on a combination of general consumer protection law and airline-specific policies, which varied significantly across carriers and often favoured credits or vouchers over cash refunds.
Key Provisions
The new Civil Aviation Requirements introduce the following measures:
48-hour free cancellation window: All airline tickets, regardless of fare class or booking channel, must provide a 48-hour window from the time of booking during which passengers can cancel their tickets without any charge. This applies uniformly across all domestic and international airlines operating in India.
Faster refund processing: Airlines are required to process refunds within a stipulated accelerated timeframe from the date of cancellation or flight disruption. The requirements specify the maximum number of days within which refunds must be credited to the original payment method.
Effective date: The requirements come into effect on 26 March 2026. Airlines are expected to update their systems, booking platforms, and customer service protocols to ensure compliance from the operative date.
Applicability: The requirements apply to all scheduled and non-scheduled airline operators holding permits under the Aircraft Rules, 1937. Both domestic and foreign carriers operating flights to and from India are covered.
Implications for Practitioners
These new requirements carry direct implications for aviation lawyers, consumer rights practitioners, and airline legal and compliance teams.
For airlines and their in-house legal counsel, the immediate priority is ensuring that booking systems and refund processing infrastructure are updated before the 26 March 2026 effective date. Fare rules and conditions of carriage documents will need to be revised to incorporate the 48-hour cancellation right and accelerated refund timelines.
Consumer rights lawyers should note that these requirements create a clear regulatory standard against which airline compliance can be measured. Non-compliance may expose airlines to enforcement action by the DGCA, in addition to remedies available under the Consumer Protection Act, 2019.
Travel agents and aggregators should also review their systems to ensure that the 48-hour cancellation right is properly communicated to passengers at the point of booking and that cancellation requests within this window are processed without charge.
The requirements signal a broader regulatory trend toward strengthening passenger protections in Indian aviation, and practitioners should anticipate further rulemaking in related areas.