After the proposed revised charges come into effect from coming Monday, the Government-run carrier would deduct as much as Rs 2,000 in case of 'no-show' by a passenger at the time of a domestic flight departure, sources said.

The move comes days after budget airline SpiceJet hiking its ticket cancellation charges to Rs 1,899 from Rs 1,800 earlier.

"Air India currently deducts Rs 1,500 from the ticket cost if passengers decide not to undertake the pre-booked journey. However, it has decided to increase this amount by Rs 500 from February 16," they said.

The airline has already issued the circular with revised charges to travel agents early last week, they said.

Among all the domestic airlines, budget carrier AirAsia India has so far the lowest ticket cancellation charges at Rs 1,502.

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