AirAsia India to lower fares, but at a price

New Delhi, Apr 10: It's the ultimate irony. While travellers are waiting for really low fares from AirAsia India, Indian carriers are waiting for it to begin operations so that they can increase their ancillary revenue by charging more for things like check-in baggage.

Indian carriers have been planning to reduce the current domestic free check-in baggage allowance of 20 kg to 15 kg. But the only reason they have not done this so far is the fear of being asked to reverse the move by the Directorate General of Civil Aviation (DGCA). The aviation regulator had asked airlines to stop charging extra for pre-selection of seats last year.

"AirAsia does not offer any free check-in luggage and passengers have the option of booking the same at the time of buying tickets. They are likely to get the same policy to India, enabling us to at least lower the current free checkin weight from 20 kg to at least 15 kg," said an airline official.

The official of another airline said, "Once big names like Tata Sons and AirAsia have a JV airline flying here, the mandarins of aviation ministry and the offices they control will not be able to interfere too much. Airlines will hopefully be able to get some more operational freedom."

For instance, airlines point out, charging for pre-selection of seats is a common global practice but that is not allowed in India.

LCCs, which now fly almost 75% of all domestic travellers , say they are looking at unbundling services so that the basic cost of flying from origin to destination is low but a passenger is required to pay for anything else.

"Today, even the full-service Air India is contemplating charging for meals while giving only snacks and peanuts free. Airlines need to generate revenue and given the condition of Indian airlines — with all of them struggling to survive except IndiGo — any revenue stream has to be considered seriously," said an airline official.

Higher billing

Domestic carriers may cut free check-in luggage limit to 15kg from 20kg if AirAsia brings its fee model to India They also want to charge again for pre-selection of seats after DGCA scrapped the move the first time round Full-service carrier Air India is already considering charging for meals and giving only snacks and peanuts free