Press "Enter" to skip to content

IndiGo Likely To Unbundle Fares To Compete As Low-Cost Carrier, Considering Charging For Check-In Baggage: Report


New Delhi: IndiGo, one of Asia’s biggest low-cost carriers, is considering charging fliers for check-in baggage, as the airline prepares for a potential price war in the Indian aviation market.

As per this unbundling of fares, passengers traveling with no check-in baggage or only cabin baggage will be offered a lesser price of tickets. This price change can lower the airfare significantly, reports Bloomberg.

The Indian aviation industry is on its way to recovery after it can be assumed that the worst of the covid-19 pandemic has passed.

IndiGo, which is operated by InterGlobe Aviation Ltd. did not implement this unbundling of fares in February when the Directorate General of Civil Aviation (DGCA) issued the guidelines due to covid-19.

“We have been talking to the government about that. We’re waiting for everything to settle down before we lock something,” said Ronojoy Dutta, CEO, InterGlobe Aviation in an interview with Bloomberg. 

He also added that IndiGo is “unlikely” to raise funds as air travel is picking up pace again, slowly heading towards pre-pandemic capacity. India allowed 100 percent capacity for domestic flights in October. 

“Frankly, I don’t think we need it now because of no third wave, and revenue is coming back,” Dutta added.

Indian Aviation Industry — Cut-Throat Competition  

While according to Bloomberg, this price change is expected to aggravate the cut-throat competition in the Indian aviation industry, Dutta seems to be relaxed about it. 

In another interview with the Economic Times, Dutta said, “I believe it is good to have healthy and economically responsible competitors and that is what the Tatas are.”

With Air India going to Tata group, Rakesh Jhunjhunwala’s new airline Akasa, and Tata’s Vistara, the aviation industry is expected to get crowded, reports Bloomberg.

Though Dutta says, they have “little space to themselves, which is good, and they’re separated from us” as they are going to operate as full-service carriers.


Source link

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *