Some airline sources, however, fear it will reduce overall yields
SpiceJet chief operating officer Sanjiv Kapoor said the move will encourage passengers to travel light and help reduce fuel burn.
The proposal of the DGCA has also found a taker in AirAsia, which had in fact asked for permission to do so when it had started operations. Mittu Chandilya, chief executive officer (CEO) of AirAsia India, said, "We are excited about this and have always advocated the unbundling of fares and being transparent with all charges against each service and product. We have been sharing how this actually works to give passengers more choices and flexibility and so are happy to see this proposal"
The civil aviation regulator is considering allowing airlines to offer discounts to passengers without check-in baggages as this would benefit both parties.
"SpiceJet would be keen to implement as soon as possible once this is permitted as this is commonly practiced by low-cost airlines all over the world and encourages customers to travel light in an an era of extremely high fuel costs,'' said SpiceJet's Kapoor. He said that the idea was to charge passengers for services which are availed by them. British Airways offers hand baggage-only fare on its short-haul routes and this seems to be popular, Kapoor added.
Airlines have been clamouring for the unbundling of fares so that these can increase their yields. The government has given some leeway like allowing these to charge extra on priority seating and seat of choice, among others. Ancillary revenues currently constitute only two per cent to five per cent of overall revenues.
Lightening up
AirAsia launches daily flight to Jaipur, Chandigarh
Bangalore beats Mumbai, Delhi as airlines' favourite hub
SpiceJet promoters to infuse fresh equity into the airline
Vistara might take off with 148-seater Airbus A320s
Airlines need to discuss high taxes on ATF with govt: AirAsia