A new advisory of the Directorate General of Civil Aviation (DGCA) may make basic airfares more affordable. In a circular dated 23rd April 2024, DGCA said that airlines should unbundle certain services that are not required by passengers.
This decision is expected to make air travel more cost-effective for passengers because unnecessary charges will be eliminated.
“The airfares so established by the airlines also include charges for some of the services rendered by them. Based on various feedback received, it is felt that many times these services provided by the airlines may not be required by the passengers while traveling,” the DGCA said.
The aviation watchdog further listed a number of services to be unbundled from basic fares.
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“Considering the fact that unbundling of services and charges thereto has the potential to make basic fare more affordable and provides consumers an option of paying for the services which he/she wish to avail, it has been decided by the Government to allow the following services to be unbundled and charged separately on opt-in basis.” DGCA said.
List of Services To Be Unbundled
- Preferential seating
- Meal/snack/drink charges, except drinking water
- Charges for using airline lounges
- Check-in baggage charges:
The DGCA said that as part of airline baggage policy, scheduled airlines will be allowed to offer free baggage allowance as well as “Zero baggage/no check-in baggage fares”.
However, “this will be subject to the condition that the passenger booking the ticket under such fare scheme is made aware of the charges that shall be applicable if the passenger turns up with the baggage for check-in at the airline counter.”
The circular also said that these applicable charges shall be reasonable; prominently displayed to the passenger at the time of booking of the ticket and also to be printed on the ticket.
- Sports equipment charges
- Musical instrument carriage
- Fee for special declaration of valuable baggage (allow for a higher unit on carrier liability)
The DGCA has asked airlines to “provide clear information of their services and charges so that he/she opts-in only for the services they would like to avail thereby reducing potential confusion and chances of selecting the services he/she would not like to avail/purchase at the time of booking”.
According to the circular, unbundled services must have clear descriptions and be unambiguous. This service must be provided on an “opt-in” basis, not “opt-out.”
Further, airlines have been asked to announce changes at least 30 days in advance.
The DGCA said that unbundled services and charges must be transparently displayed on airline websites.
However, a passenger can make booking/reservation without opting for unbundled services.
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Instructions for Travel websites
The DGCA has asked travel portals and travel agents to display unbundled services and charges like airlines. They should not charge extra for any service in case a customer has already opted for it but the airline has revised the charge/fee.
Further, the circular has asked airlines to refund consumers for services paid for but not provided.
This new decision is anticipated to help customers by increasing their options and control over how much they pay for air travel. So, the next time you buy a ticket, look at unbundled service options to see if you may save money.
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