India's Directorate General of Civil Aviation (DGCA) has issued Flying Training Circular 02 of 2026, a set of guidelines for the agreements that flying training organisations (FTOs) sign with trainee pilots1. The circular and an accompanying public notice are both dated 5 October 2026 and are signed by Sanjay K. Bramhane, Joint Director General, for the Director General of Civil Aviation12. The DGCA said the guidelines were issued "with the objective of promoting transparency, fair practices and accountability in the conduct of flying training" and are intended to give "greater clarity and protection to aspiring trainee pilots and their parents/guardians"2.

What the agreement must contain

At enrolment, the FTO must give the trainee written details that form part of the agreement and are signed by both parties1. These include the course, its estimated duration, flying and ground training requirements, aircraft types, the fee structure and payment schedule, the refund policy, other charges, conditions for discontinuation and transfer, and the grievance mechanism1. Information on the school's website must be consistent with the arrangements that apply to the trainee, and for minors a parent or guardian signs the agreement1. The fee structure must identify non-refundable components, and the circular states that "No hidden or undisclosed charge shall be imposed"1.

Fees in four blocks and clearer refunds

The total prescribed flying training "shall ordinarily be divided into equitable four progressive blocks of 25% each", with the fee for each block payable as training progresses1. Trainees cannot be required to pay the entire course fee or flying fee in advance, and "At any stage, the advance payment for flying training shall not exceed the fee corresponding to the next 25% block of the prescribed flying training"1. A school may not demand payment for the next block until the preceding one has been "completed/substantially utilised"1.

The standard agreement may not contain a blanket clause making the entire training fee non-refundable, and unutilised fees "shall ordinarily be refundable", subject to reasonable and clearly disclosed charges1. A refund "should ordinarily be processed within 15 working days after completion of the required formalities"1. Where a trainee transfers for reasons "substantially attributable to the FTO", such as suspension of the school's approval, a material unilateral change to agreed fees or training conditions, or persistent disruption, the trainee is ordinarily entitled to a refund of the entire unutilised fee1. A trainee who moves "solely due to personal preference" is instead refunded under the school's published policy and the agreed terms1. Fees and other material terms may not be altered unilaterally in a way "materially prejudicial to the trainee", and any material change "shall never be retrospective in nature"1.

Training records, rosters and grievances

The circular builds on Civil Aviation Requirement Section 7 Series D Part I, the DGCA's rule for flying schools, reissued on 10 December 20253. That rule already requires a school to publish "the process of induction, training fee structure and fee refund policy etc. on its website", and on a transfer to send the trainee's completed flying training progress report (FTPR) in a sealed cover to the new school "within 7 days of the initial written request"3. The new circular adds that "Training records shall not be withheld as a means of recovering disputed fees" and that financial disputes may not be used to withhold records needed to continue regulated training1.

Schools must also prepare the flying roster at least one day in advance and have repeated cancellations reviewed by the CFI or Dy. CFI and the Accountable Manager, and any deviation from the roster "should be recorded with reasons"1. Grievances must be recorded and acknowledged and "should ordinarily be examined and responded to within 7 working days"1. An FTO may not "Discourage a trainee from raising a genuine safety concern" or allow contractual or financial considerations to compromise the quality of training1.

Context and the limits of the DGCA's role

In July 2026 the DGCA barred Redbird Flight Training Academy, described by The New Indian Express as South Asia's largest flight training school, from admitting new students until 31 August 2027 following complaints from trainee pilots4. According to the newspaper, the order cited delays in completing training, a unilateral revision of training charges to Rs 3,000 per flying hour citing higher fuel costs, "inadequate and disproportionate fee refunds", revised agreements imposing additional charges and the alleged denial of training facilities to students unwilling to accept the revised terms4. Karan Mann, a senior manager at Redbird, confirmed receipt of the order and told the newspaper: "We have more than 500 students presently and have 43 aircraft." He said ten more aircraft were on order but had been delayed "Due to global tensions"4. The intake bar did not withdraw the academy's approval: Redbird still appears, with approval valid until July 2030, on the DGCA's list of approved FTOs dated 3 October 2026, which has 41 entries5.

The circular is "not intended to regulate the private contractual relationship between the FTO and trainees in its entirety or to make DGCA an adjudicating authority for purely commercial disputes", and the DGCA "shall not ordinarily adjudicate purely private claims relating to damages, compensation, or recovery of contractual dues"1. Non-compliance will, however, be dealt with under the CAR, with "restriction/stoppage of trainee intake" among the possible measures1. For training outside India, the DGCA said in December 2025 that refunds, financial disputes and contractual disagreements with foreign schools "are outside the purview of DGCA"6, and it repeated the warning in a cautionary circular reported by the Times of India in February 20267. Separately, the Ministry of Civil Aviation has said the DGCA's ranking of FTOs, first published on 1 October 2025 with a second phase in April 2026, has enabled aspiring pilots to make informed decisions8.

What this means for trainee pilots

The DGCA advises trainees and parents to "carefully read the agreement and fee/refund conditions before enrolment, obtain a mutually signed copy of the agreement, retain payment receipts and training records, and seek written clarification from the FTO regarding any unclear terms"2. Under the guidelines, a prospective student should expect a block-by-block payment schedule in the agreement, an itemised refund calculation on leaving, and release of training records on transfer regardless of any fee dispute1. Students comparing costs more widely can read our explainer on what a CPL costs, and safety oversight of Indian schools is covered in our report on the Kanpur flight school investigation.