- Shares of InterGlobe Aviation and SpiceJet fell after DGCA issued updated refund rules
- InterGlobe shares dropped 0.78%, SpiceJet shares declined nearly 1.5% in today's trading
- DGCA ruled airlines cannot charge extra fees for processing ticket refunds
Shares of InterGlobe Aviation and SpiceJet are trading lower in today's session on the Directorate General of Civil Aviation (DGCA) issuing updated refund rules in response to a growing number of passenger complaints on Thursday.
InterGlobe Aviation shares are lower by 0.78%, trading at around Rs 4,895 apiece. Meanwhile, SpiceJet is trading almost 1.5% lower, trading at around Rs 15.67 apiece.
Of the 27 analysts tracking the InterGlobe stock, 22 have a 'buy' call, three have a 'hold', and two have a 'sell' rating on it, with an upside potential of 17%, as per Bloomberg data
SpiceJet, on the other hand, has four analysts tracking it. It has one 'buy' call, one 'sell' call, and two 'hold' calls.
The regulator clarified that airlines cannot impose any extra charges for processing refunds. The revised norms fall under Section 3 – Air Transport of the Civil Aviation Requirements (CAR). While noting that the government does not intend to interfere with airlines' commercial decisions, the DGCA said the sheer volume of complaints made it necessary to introduce measures that protect passengers' interests.
ALSO READ: DGCA Announces Eight New Stringent Safety Mandates Amid Rise In Aviation Accidents
Under the new rules, if a ticket was paid for using a credit card, the airline must return the amount to the cardholder's account within seven days of cancellation. For tickets bought with cash, refunds must be issued immediately at the airline office where the ticket was purchased.
In cases where tickets were booked through a travel agent or an online portal, airlines must ensure the refund is completed within 14 working days. The DGCA added that the responsibility for the refund ultimately rests with the airline, since agents act on their behalf.
The regulator further directed airlines to clearly spell out the exact refund amount a passenger is entitled to when a ticket is cancelled. It emphasized that cancellation fees must be displayed prominently at the time of booking, leaving no ambiguity for travellers.
The DGCA also clarified that neither an airline nor its authorised agents are allowed to levy cancellation charges exceeding the sum of the basic fare and fuel surcharge. No additional components may be added to the penalty under any circumstances, the regulator said in its statement.
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