IndiGo, SpiceJet Shares Fall On DGCA's New Cancellation Rules

Shares of IndiGo and SpiceJet experienced a decline following the Directorate General of Civil Aviation's (DGCA) announcement of new cancellation regulations. Under these revised guidelines, airlines are prohibited from levying additional fees on passengers for refund processing. This change, which falls under Section 3 of the Air Transport of the Civil Aviation Requirements (CAR), aims to enhance consumer protection and transparency in the aviation sector. The DGCA's decision comes amid ongoing scrutiny of airline practices regarding cancellations and refunds, which have been contentious issues for travelers in recent years. The move is expected to impact the financial dynamics of the airlines, particularly as they navigate the post-pandemic recovery phase. Stakeholders in the aviation industry are closely monitoring the implications of these new rules, as they may influence customer trust and overall service quality in the competitive airline market.