Penalties on air ticket cancellation lessened

By Yoon Ja-young

Those who cancel their international air ticket will not be levied penalty as long as they cancel it 91 days before departure.

The Fair Trade Commission (FTC) said Wednesday that it revised contracts of the seven local airlines regarding cancellation of air tickets. They are Korean Air, Asiana Airlines, Jeju Air, Air Busan, Eastar Jet, Jin Air and T’way Air.

They have been levying fixed rate of cancellation fees on air tickets, regardless of when the passenger cancels the air tickets.

After the revision, however, they will be levying different rates of cancellation fees, depending on when the cancellation is made. The cancellation made at least 91 days before departure, for instance, won’t be levied any cancellation fee, while cancellations made with 90 days or less left until departure will be levied different rates of fees. The closer the departure is, the higher will be the cancellation fees. It reflects the higher loss that airline operator is likely to sustain as the departure draws near. For instance, it cost between 50,000 won and 150,000 won to cancel a Korean Air flight ticket, but it would range between zero to 230,000 won after the revision.

The revision, however, applies to only international flights as the regulator deemed that the cancellation fee is already low for domestic flights. Special offer air flights, provided at over 70 percent discounted price with no refund option, are also exempt from the revision.

Complaints over air ticket cancellation fee has been rising steep. According to the Korea Consumer Agency, damage reliefs related with air flight services totaled 900 last year. Most of them, or 766, were related with air ticket cancellation.

“The measure is expected to decrease conflict over air ticket cancellation fees and prevent consumer damage. We hope it will help protection of consumers’ right,” said Min Hye-young, an official in charge of contract revision at the FTC.

She added that the commission plans to review contracts of foreign airliners and travel agencies as well to examine whether consumers are disadvantaged regarding the cancellation fees.