Wednesday, May 01, 2013

Base airfare may fall as flyers can now choose & pay for services


Does the ministry of civil aviation's recent decision authorizing airlines to unbundle airfares spell bad news for flyers? The answer is no, going by the unbundling models followed in the US, Europe and Asia for years now.
But with unbundling, airfares will become complicated with several hidden and not-so-hidden fees and that will surely hit the regular Indian flyer.
Unbundling refers to removing a particular amenity or service, such as food or a preferred seat, and selling it separately to flyers who need it. The idea is to ostensibly reduce the base airfare, the argument being that the flyer pays only for things he needs. So, if he does not want food on the flight, he does not pay for it and gets a cheaper fare compared to another flyer who opted to buy food. In short, a well-informed flyer with minimum needs will benefit the most from unbundling.
02/05/13 Manju V/Times of India
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