Air India asks passengers to pay on baggage above 15 kg

Moneycontrol Bureau

In a bid to enhance passenger income, debt-ridden national carrier Air India (AI) has decided to reduce free baggage limit from 20 to 15 kg, a move that could upset passenger associations.

Though AI official did not officially confirm this development, there is a buzz that it will implement the new policy of charging Rs 250/kg on excess baggage, state media reports

This decision follows the aviation regulator’s decision to allow airlines unbundle services they offer to passengers, a policy that can be considered in-line with global trends.

For instance British Airways charges £40 for baggage in excess of 23 kg and less than 32 kg and baggage above higher limit. Even Finnair charges the same amount to passenger carrying in baggage in excess of 32 kg.

Infact airlines world over are looking at enhancing ancillary revenues by introducing newer services or by charging fee for choosing a particular seat on-board.

AI’s rival Jet Airways has in the past one year introduced a slew of activities to grow its ancillary revenues by generating income from food and beverages, merchandise and various forms of advertising campaigns on the body of the aircraft.

Currently Jet earns around USD 3.5 per passenger by way of ancillary revenues and we will be announcing many initiatives in times to come to boost it to around USD 10.

AI is also considering the scope of charging for additional services so that it can offer competitive fares in a high-cost environment and stiff competition from domestic and foreign airlines. The airline has a debt of over Rs 40,000 crore and has accumulated loss of Rs 20,000 crore since its merger with former Indian Airlines.

The government has maintained its stance that the airline has to improve its operating and financial performance by fine-tuning business strategies for any kind of liquidity support.