The jury is still out on whether the Government’s decision to unbundle certain services on domestic flights is good news or bad for flyers. But a look at what airlines abroad charge provides some clues on what lies ahead.
Internationally, many airlines, especially low-cost, have for a while been charging for among other things checked-in bags, meals and even the seat.
Revenue stream
This is seen as a separate revenue stream for airlines. Ryanair — the airline Civil Aviation Minister Ajit Singh said was among those that had been studied before the unbundling move — charges a priority boarding fee of €7-10 (Rs 500-700) This facility allows the flyer to be among the first to board a flight.AirAsia, which plans to begin India operations later this year, charges Rs 90 for a standard seat selection. This figure goes up to Rs 450 for a “hot seat”. Paying this allows the flyer priority boarding and get a comparatively comfortable seat with more leg space.For sports equipment and musical instruments (20 kg/per item/one way) Ryanair charges €50-60 (Rs 3,500-4,200). Checked-in bags will attract the usual charge. The unbundling in India covers these two categories. For every first checked-in bag (15 kg) Ryanair charges €15 (about Rs 1,100) if done at the time of booking on the airline’s Web site. This figure goes up to €60 (Rs 4,200) if the booking is made through the call centre or if the ticket is purchased at the airport. For the second checked-in bag (15 kg), the rate ranges from €105 (Rs 7,500) to €160 (Rs 11,000), depending on the flight and low/peak season. In comparison, American Airlines charges domestic flyers $25 (about Rs 1,400) for the first checked-in bag and $35 (about Rs 1,900) for the second.
Commercial decision
The Directorate-General of Civil Aviation (DGCA) has allowed airlines in India also to start charging separately for these services. Air India was first off the block,cutting baggage allowance to 15 kg and setting a fee of Rs 250/kg for excess weight. This applies from May 13. The other domestic airlines do not appear to have made up their minds yet. SpiceJet Chief Executive Officer Neil Mills said this will be a “commercial decision” which the airline will take at an appropriate time. “The lowering of fares will happen over a period,” he said declining to set a time line.
http://www.thehindubusinessline.com/industry-and-economy/logistics/unbundling-services-a-new-revenue-stream-for-airlines/article4696054.ece
Internationally, many airlines, especially low-cost, have for a while been charging for among other things checked-in bags, meals and even the seat.
Revenue stream
This is seen as a separate revenue stream for airlines. Ryanair — the airline Civil Aviation Minister Ajit Singh said was among those that had been studied before the unbundling move — charges a priority boarding fee of €7-10 (Rs 500-700) This facility allows the flyer to be among the first to board a flight.AirAsia, which plans to begin India operations later this year, charges Rs 90 for a standard seat selection. This figure goes up to Rs 450 for a “hot seat”. Paying this allows the flyer priority boarding and get a comparatively comfortable seat with more leg space.For sports equipment and musical instruments (20 kg/per item/one way) Ryanair charges €50-60 (Rs 3,500-4,200). Checked-in bags will attract the usual charge. The unbundling in India covers these two categories. For every first checked-in bag (15 kg) Ryanair charges €15 (about Rs 1,100) if done at the time of booking on the airline’s Web site. This figure goes up to €60 (Rs 4,200) if the booking is made through the call centre or if the ticket is purchased at the airport. For the second checked-in bag (15 kg), the rate ranges from €105 (Rs 7,500) to €160 (Rs 11,000), depending on the flight and low/peak season. In comparison, American Airlines charges domestic flyers $25 (about Rs 1,400) for the first checked-in bag and $35 (about Rs 1,900) for the second.
Commercial decision
The Directorate-General of Civil Aviation (DGCA) has allowed airlines in India also to start charging separately for these services. Air India was first off the block,cutting baggage allowance to 15 kg and setting a fee of Rs 250/kg for excess weight. This applies from May 13. The other domestic airlines do not appear to have made up their minds yet. SpiceJet Chief Executive Officer Neil Mills said this will be a “commercial decision” which the airline will take at an appropriate time. “The lowering of fares will happen over a period,” he said declining to set a time line.
http://www.thehindubusinessline.com/industry-and-economy/logistics/unbundling-services-a-new-revenue-stream-for-airlines/article4696054.ece
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