<div><em>Air travellers can now expect lower fares on any domestic routes provided they do not carry check-in baggage, <strong>Ashish Sinha</strong> reports</em></div><div> </div><div>A separate category of air fares for only carry-on baggage passengers will be announced very soon by the domestic carriers after the Director General of Civil Aviation (DGCA), the aviation regulator, has allowed all domestic carriers to roll out “zero bag” fares and charge penalty against check-in baggage for tickets booked under such an offer. </div><div> </div><div>This move is significant because in March, DGCA had supported the unbundling of services and fees by scheduled airlines provided it was optional for the passengers. But later opposed the move through a circular in July after complaints lodged by air travellers. Justifying the go ahead for zero bag fares, DGCA said in its latest circular that such a move has the "potential to make basic fare more affordable". It said this will provide consumer an option of paying for the services they wish to avail. </div><div> </div><div>Aviation experts said allowing the zero bag scheme will help the business air travellers more who frequently fly in and out of a city either the same day or the next day. </div><div> </div><div>However, if a passenger who avails the zero bag fares turns up at the airport with check-in baggage, the airlines can now charge a penalty.</div><div> </div><div>Before the DGCA circular was issued on November 8, 2015, all domestic carriers except Air India allowed air travellers to carry up to 15 kilograms of check-in baggage without any extra cost. Air India allowed up to 23 Kilograms of free check-in baggage. </div><div> </div><div>SpiceJet has welcomed this customer and environment friendly move stating that it was is "in line" with the changing trends.</div><div> </div><div>In June this year, SpiceJet had rolled out a scheme, offering a discount of Rs. 200 to every passenger who books a flight with only one handbag and no check-in baggage. The offer, however, came with a rider that those who book tickets at discounted fares but later decide to carry check-in baggage would have to pay a fee of Rs. 500 for up to 10 kg and Rs. 750 for up to 15 kg baggage.</div><div> </div><div><strong>November Circular</strong></div><div>The November 8, 2015 circular will now supersede all previous circulars issued by the DGCA on "Unbundle of services and fees by scheduled airlines". </div><div> </div><div>"On the basis of various feedback received, it is felt that many a times these services provided by the airlines may not be required by the passengers while travelling. Considering the fact that unbundling of services and charges thereto has the potential to make basic fare more affordable and provides consumer an option of paying for the services which he/she wishes to avail, it has been decided by the Government to allow following services to be unbundled and charged separately on opt-in basis. These include Preferential seating, Meal/snack/drink charges (except drinking water), Charges for using airline lounges, Check-in baggage charges (above 15 kgs of free check-in baggage allowance). Airlines are allowed to offer “no check-in baggage/hand baggage only” fare scheme subject to the condition that the penalty to be imposed on a passenger, who avails such schemes but turns up with baggage for check-in at airline counter, cannot exceed the amount of incentive offered compared to lowest fare. </div><div> </div><div><strong>March Circular</strong></div><div>On March 24, the DGCA had issued the “Air Transport Circular 1 of 2015” titled ‘Unbundle of services and fees by scheduled airlines’. The circular said: “Considering the fact that unbundling of services and charges thereto has the potential to make basic fare more affordable and provides consumer an option of paying for the services which he/she wishes to avail, it has been decided by the Government to allow following services to be unbundled and charged separately on opt-in basis. These include Preferential seating, meal/snack/drink charges (except drinking water), Charges for using airline lounges, check-in baggage charges, sports equipment charges, musical instrument carriage, and fee for special declaration of valuable baggage (allow for higher unit on carrier liability).”</div><div> </div><div>The circular, however, came with certain riders: “The unbundled services must be provided on “opt-in” basis and not on “opt-out” basis. Charges for the unbundled services shall be fixed amount and shall not vary with the base fare for a particular sector/flight. Changes, if any, should be announced at least 30 days in advance by the airlines; and the scheduled airlines shall display the unbundled services and charges thereto on their respective websites in a transparent and conspicuous manner.” The riders also ensured that the airlines will be responsible for ensuring that the charges for the unbundled services are displayed by the travel portals/travel agents too,” it said.</div><div> </div><div>Taking a cue from this circular, which sources say is born out of years of continuous presentations and convincing the aviation authorities by the domestic airlines, three Indian low cost carriers had sent in their proposal to offer lower fare for passengers who fly only with cabin baggage. This low fare option was suggested to be in addition to the regular fare offered currently where 15 kg of check-in baggage is allowed. </div><div> </div><div>According to DGCA officials, the proposal was examined to see whether the low cost carriers give substantial benefit to flyers for not carrying check-in baggage and avoid a situation where the 15-kg baggage is taken without adequate advantage to the flyer. In effect, this suggestion entails the option of offering two sets of fares to the air traveller for the same destination - low fares (around Rs 500-1,000 less depending upon the airfare) for only hand baggage and the regular ones (with 15 kg of baggage allowed).</div><div> </div><div>The November Circular is the result of the initiatives of the low-cost carriers, said an industry insider. “Very soon you will see the special zero bag fare scheme getting launched. With the amount of interest among air travellers, the zero bag scheme will find many takers on the busy Mumbai-Delhi, Delhi-Bangalore, Delhi-Pune, Delhi-Hyderabad, Mumbai-Hyderabad, Mumbai-Ahmedabad, Delhi-Amritsar and Delhi-Kolkata route among others,” said a senior executive of a Delhi-based carrier. </div><div> </div><div>ashish.sinha@businessworld.in</div><div> </div><div> </div>
