Decoding your air ticket: Here's how much you can save after cap on cancellation charges
Flight cancellation charges of airlines can be extremely high and range Rs 1,900 to Rs 2,250, depending upon the number of days before the booking is called.
The recent development of Directorate General of Civil Aviation (DGCA) is deciding whether to put a cap on cancellation charges levied by airline below the base airfare, comes as good news for fliers.
Flight cancellation charges of airlines can be extremely high and range Rs 1,900 to Rs 2,250 depending upon the number of days before the booking is called, according to a dna report.
For example, last year one of the leading carriers had three slabs for flight cancellation charges - Rs 1,250 for cancellations up to 30 days before flight; Rs 1,500 for cancellation from 30 days to a week before departure and Rs 2,000 for a week before flight time.
At times passengers don't end up getting any refund on cancellation of tickets as there are various tax components including airport tax.
Here is an estimated break-up of the flight ticket including the taxes and cancellation charge:
Base Fare: Rs 500
Passenger Service Fees: Rs 146 (fixed fees)
User Development Fees: 664
Service Tax: (@15%) Rs 75
Fuel Surcharge: Rs 1,100-Rs 3,000
Congestion Surcharge: Rs 150 (per Sector)
Convenience Fees: Rs 50
Total: Rs 2,685 – Rs 4,585
Cancellation charges: Rs 1,900- Rs 2,250
Amount after cancellation charges: Rs 785 - Rs 2,335
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
SBI 444-day FD vs PNB 400-day FD: Here's what general and senior citizens will get in maturity on Rs 3.5 lakh and 7 lakh investments in special FDs?
Power of Compounding: How long it will take to build Rs 5 crore corpus with Rs 5,000, Rs 10,000 and Rs 15,000 monthly investments?
Small SIP, Big Impact: Rs 1,111 monthly SIP for 40 years, Rs 11,111 for 20 years or Rs 22,222 for 10 years, which do you think works best?
05:15 PM IST