Daijiworld Media Network

New Delhi, Nov 28: The government may soon ask airlines to keep cancellation fees reasonable, and has termed the current fee as “onerous for passengers”.

"We believe cancellation charges are on the high side and onerous for passengers. The Rs 3,000 fee is in many cases more than the price of the ticket itself. Our UDAN (subsidised regional flying) scheme has capped fares at Rs 2,500 per hour of flying. These cancellation charges need to be brought back into balance," aviation minister Jayant Sinha told TOI.

Apart from ordering a review of the exorbitant cancellation penalty, Sinha is also reportedly working on a passenger bill of rights (PBOR) that will incorporate global best practices.

"India has seen a doubling of air travellers in the last 3.5 years, a growth rate that has not been witnessed anywhere globally. Many are first-time flyers need to be made aware of their rights and duties," he said.

The PBOR will be a robust and balanced document to protect consumer rights, Sinha added.

Reports state that between January and April this year, airlines have shelled out Rs 22 crore as passenger compensation. Thanks to, The Directorate General of Civil Aviation (DGCA) which directed airlines to compensate flyers for denying boarding in cases of overbooking, flight delays and cancellations.

According to airline industry experts, the current booking algorithm works on the premise that pre-booking gets the passenger good deals, later bookings are expensive and cancellation is heavy on the pocket.

Most of the airlines attract flyers with promos and flash sales which give lucrative pricing if tickets are booked in advance. However, over 50 per cent of these bookings are cancelled as people are unable to travel on the given date and people end up losing their money as these tickets are non-refundable or cancellation is pricier than the ticket value itself.