New Civil Aviation Policy passed: Cap of Rs 2500 for hour-long, Rs 1300 for 30-minute flights

The Union Cabinet today approved the much-awaited Civil Aviation Policy, which unveils a slew of passenger-friendly measures including capping of airfares at Rs 2,500 for an hour-long flight, and allowing operators to fly abroad.

Taking serious note of the indiscriminate policies of some domestic airlines on flight cancellations and refunds, the Civil Aviation Ministry had proposed a number of steps to rein them in and said such charges won't be allowed to exceed the base fare.

Here are the Highlights:

  1. A cap of Rs 1300 has been decided for all flights of less than 30-minute duration, sources said.
  2. The government has relaxed the rule according to which only those airlines which have at least 20 aeroplanes and are in operation for minimum five years can fly abroad.
  3. Airlines will ensure that refunds on cancelled tickets are made within 15 days, even if the bookings were made through agents or portals.
  4. In the case of flight cancellations announced within 24 hours of departure, the compensation amount has been enhanced to up to Rs 10,000.
  5. Refunds will be applicable on all fares, including promotional and special rates.
  6. A look at the terms of flag carrier Air India revealed that the airline, on a one-way ticket to Mumbai with a base fare of 2,527.00, charges Rs 2,000 towards cancellation if made more than 24 hours before departure. But if it is within 24 hours, the levy comprises basic fare plus airline fuel charge.
  7. Jet Airways since January last year has a zero penalty rule for cancellations made before 24 hours of departure if the reservation is made through their website or the mobile app.
  8. The new aviation policy seeks to create an eco-system to handle 300 million domestic passengers by 2022 and 500 million by 2027, and 200 million international travellers by 2027.
  9. India had seen 139.32 million domestic and over 50 million international air travellers in 2014-15.
  10. The NDA government had for the first time unveiled the policy draft in November 2014, subsequently replacing it with another draft in October 2015.

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