INDIA’S Ministry of Civil Aviation has given the green light for Indian carriers to unbundle certain services and charge separate fees for each of them, including check-in baggage, seat preference, selection of meals and beverages, and carriage of sports equipment.
The government rolled out the new guidelines on the assumption that the basic fares will be kept low for price-conscious clientele, while enabling airlines to develop more sustainable operations in an increasingly competitive aviation environment.
To ensure transparency of charges, the ministry’s acquiescence also comes with a corollary that carriers will have to fix and announce their charges in advance.
Sanjay Maniar, director of Kolkata-based Travelaid, said: “With the abnormally high cost of aviation turbine fuel in India and state taxes ranging from five to 30 per cent, the ability to find alternate sources of revenue is paramount for the survival of the Indian carriers.”
Welcoming the move, IndiGo president, Aditya Ghosh, said in a media release that “this step will align India with global practices in the airline industry.”
However, Ravi Luthra, director, New Delhi-based Landmark Tours & Travels, was not optimistic about lower fares. “Eighty per cent of an airline’s costs are fixed so they have very little room to reduce fares. We hope that paying for the additional usage that has been unbundled will not raise the total payout for a flight for the traveller,” he said.
