Air India Express introduces cabin bag-only fares following LCC standards

Tata group airline Air India Express announced on Tuesday the introduction of the cabin baggage-only fare category "Xpress Lite," marking a fresh attempt by an Indian carrier to unbundle the check-in baggage service for lower fare categories, a common practice among low-cost carriers (LCCs) in various aviation markets including Europe and Southeast Asia.

Air India Express’s new fare category

"Guests who prefer not to check-in baggage can take advantage of Xpress Lite fares, which are lower than regular fares. Additionally, Xpress Check-In allows travelers to bypass lines at baggage belts and counters and includes a complimentary +3 kg cabin baggage allowance in addition to significantly discounted pre-booked prices for +15 kg and +20 kg check-in baggage allowances to ensure maximum flexibility and convenience for guests booking on Xpress Lite fares," Air India Express said in a statement.

Given that domestic airlines continue to grant customers free check-in luggage allowance, the Indian aviation sector has, up until now, stood out among various other aviation markets in terms of hand baggage-only airfares. While many international airlines that flew to and from India did provide discounted rates with no check-in privileges, none of the domestic Indian airlines did.

"The launch of Xpress Lite fares heralds what we hope will be a new way to fly in India, extending a proposition already popular amongst flyers across the world, including international airlines flying to and from India, Xpress Lite Fares across our domestic and international network have the potential to redefine convenience in air travel while delivering exceptional value," said Ankur Garg, the chief commercial officer of Air India Express, in a press release.

DGCA Guidelines 

In 2016, the Directorate General of Civil Aviation (DGCA) permitted cabin bag-only prices, although the regulator limited the additional charge for check-in luggage to Rs 200. Industry sources claim that although several airlines attempted it, these fares were never successful because of the low cap, which prevented them from profitably exploiting the unbundling of check-in service. Then, in 2021, the DGCA authorized the unbundling of services without placing a ceiling on the cost of checking in bags. But, up until this point, no Indian airline had declared cabin bag-only rates.

Industry sources claim that Air India Express's move may encourage other Indian airlines to follow suit, especially budget airlines like IndiGo, Akasa Air, and SpiceJet. They claim that this might significantly alter India's airfare policies going forward.

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