Cheaper flight tickets soon? New DGCA rules could change how much you pay - 7 services separated from ticket cost

30/04/2024

cheaper flight tickets soon? new dgca rules could change how much you pay – 7 services separated from ticket cost

The Directorate General of Civil Aviation (DGCA) has rolled out a new directive aimed at potentially reshaping the landscape of flight ticket pricing. This directive, introduced on April 23, 2024, introduces a fundamental change in how airlines structure their ticket prices, with the potential to make air travel more affordable for certain passengers while potentially increasing costs for others.

In essence, the directive targets the inclusion of charges for certain ancillary services in the base fare of flight tickets. Historically, these services, although bundled into the ticket price, may not be necessary or desired by all passengers. The new directive mandates that airlines offer these services as optional add-ons, allowing passengers the flexibility to opt-in for specific services that align with their preferences and needs, rather than having to opt-out.

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The opt-in approach marks a departure from the conventional opt-out model, where all additional services are automatically included in the ticket price unless explicitly declined by the passenger. This shift in approach is expected to pave the way for lower base fares, as passengers only pay for the services they choose to utilize.

The DGCA’s circular identifies seven specific services that airlines can now offer on an opt-in basis, including preferential seating, meal/snack/drink charges (excluding drinking water), charges for airline lounges, check-in baggage fees, sports equipment charges, musical instrument carriage, and fees for declaring valuable baggage with higher liability limits.

As per TOI report, moreover, airlines are permitted to introduce policies such as free baggage allowance and “Zero baggage/no-check-in baggage” fares. However, if a passenger opts for the latter and subsequently brings baggage to check-in at the airport, additional charges may apply. These charges must be reasonable, transparently displayed to the passenger during the booking process, and printed on the ticket itself.

Nilesh Tribhuvann, Managing Partner at White & Brief – Advocates & Solicitors, views this directive as a potential catalyst for modest adjustments in pricing structures within the aviation industry. While widespread reductions in ticket prices may not be imminent, the directive affords customers greater flexibility in tailoring their travel experiences to their budgets and preferences, potentially resulting in overall cost savings.

However, alongside the prospect of more affordable airfares, the directive also brings the possibility of increased costs for certain passengers. As per TOI report, another DGCA circular stipulates that airlines must ensure children under 12 years of age are seated with at least one parent or guardian when traveling on the same reservation (PNR). This requirement, while enhancing passenger safety and comfort, may necessitate operational adjustments and could impact ticket pricing strategies.

As per TOI report, Gauri Subramanium, an Advocate at the Supreme Court of India, underscores the significance of revenue management in the aviation sector and suggests that airlines now have an opportunity to recalibrate their pricing strategies in alignment with the new regulations. While some may perceive the directive as potentially reducing revenue from ancillary services, it underscores a customer-centric approach vital for fostering brand loyalty and trust.

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