Air India to Unbundle Meals, Cut Ticket Prices on Short Flights
Air India to Unbundle Meals, Cut Ticket Prices on Short Flights
Air India plans to make meals optional and unbundle lounge access on domestic and short international flights to trim fares amid rising fuel costs and a slipping rupee.
New Delhi: Desperate times call for desperate measures. Full-service Air India is planning to make meals optional on domestic and short international flights (under two hours). Once this unbundling rolls out in the next month or two, passengers opting out of meals could see ticket prices drop by up to Rs 250. The airline is also weighing unbundling lounge access for business class travellers, which could lower prices for those who choose not to use the lounge.
Air India says the change is driven by rising aviation turbine fuel prices and a depreciating rupee, with India’s price-sensitive market likely to respond to lower base fares. Lounge operators currently charge Rs 1,100-1,400 per user at metro airports and Rs 600-700 at non-metro airports, with the average spend around Rs 1,000 per lounge.
Globally, several full-service carriers have already unbundled onboard offerings, providing a basic meal in economy while offering gastronomic options at extra cost, and charging separately for beverages. Since late February, the rupee has depreciated while ATF costs have climbed, prompting talks of further cost-cutting steps. If implemented, the unbundling could help Air India stay competitive while navigating the cost-revenue turbulence linked to the West Asia crisis. The airline’s leadership has signalled more measures could be explored as part of a broader revamp to weather current pressures.
