In view of rapid expansion of air services within India and on international routes to/from India and with the increase in the volume of passenger traffic, it has been noticed that sometimes Airlines downgrade passengers (tickets). For example when a passenger who has booked his ticket on first class, business class or premium economy, is downgraded to a lower class at the time of check-in due to various reasons like unserviceable seats, change of aircraft, overbooking, etc. In order to cater to such situations, DGCA is in the process of amending its Civil Aviation Requirement (CAR) Section-3, Series M Part IV “Facilities to be provided to passengers by airlines due to denied boarding, cancellation of flights and delays in flights.” to protect the rights of air travelers affected by downgrading of their ticket.
The amendment will allow the passenger, who is downgraded involuntarily from his booked class of ticket, to receive the full value of ticket including taxes as refund from the airline and the airline will carry the passenger free of cost in the next available class. However, this proposal will go through stakeholder consultation and the final regulation shall be published and made applicable afterwards.
The existing provisions specified in CAR which provides compensation as below remain unchanged:
Denied Boarding
| S.No. | Scenario | Compensation |
| 1 | If airline has done overbooking in a flight | Airline to ask for volunteers in exchange of benefits |
| 2 | If airline has denied boarding to a passenger against confirmed bookings for travel on the flight | No compensation if airline arranges alternate flight within 1 hr of original departure |
| 3 | If airline has denied boarding to a passenger against confirmed bookings for travel on the flight |
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Flight Cancellation*
| S.No. | Scenario | Compensation |
| 1 | If airline expects cancellation of flight | Airline to inform & arrange alternate flight at least two weeks in advance |
| 2 | If airline cancels a flight in less than two weeks before and up to 24 hrs of booked flight | Airline to arrange alternate flight within 2 hrs of original departure or refund the ticket. |
| 3 | If airline cancels a flight in less than 24 hrs of booked flight | Airlines to refund the air ticket and provide compensation as follows:
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* No obligation in case of force majeure event.