Airlines lean heavily on vouchers because most passengers accept them. You are generally entitled to insist on money.
The framework
Passenger rights are governed by the DGCA's Civil Aviation Requirements, principally the CAR on refunds and the CAR on denied boarding, cancellation and delays, read with the Consumer Protection Act, 2019.
Cancellation
- If the airline cancels, you are entitled to a full refund or an alternate flight, at your option. A voucher is only an option if you choose it.
- Where cancellation is not notified sufficiently in advance and no alternate flight is arranged within the prescribed window, compensation is payable in addition to the refund.
- Refunds must be processed within the timelines in the CAR, and the airline may not withhold statutory taxes and user development fees on an unflown ticket.
Denied boarding due to overbooking
If you have a confirmed booking and reported on time but are denied boarding, the airline must first seek volunteers. If it still denies you boarding, compensation is payable on the scale in the CAR, which varies with how quickly an alternate flight is arranged.
Delays
Meals and refreshments for defined delay bands, hotel accommodation with transfers where the delay extends overnight, and a right to a full refund where the delay exceeds the prescribed period.
Airlines are not liable to pay compensation where the cancellation or delay is due to extraordinary circumstances beyond their control, such as weather, political instability, security risks or air traffic restrictions. Note the distinction: even then, the right to a refund of an unflown ticket survives. Extraordinary circumstances excuse compensation, not the refund.
Baggage
Compensation for lost, damaged or delayed baggage is governed by the Carriage by Air Act, 1972 and the Montreal Convention limits for international carriage. Report at the airport and obtain a Property Irregularity Report before leaving; without it, claims become very difficult.
How to escalate
Complain in writing to the airline's nodal officer, then on the AirSewa portal, and if unresolved, file before the District Commission where you reside. Keep the ticket, boarding pass, cancellation message, and every communication.