DGCA's New Rule to Potentially Reduce Flight Base Fares- Check Details

DCGA New Rule: The Directorate General of Civil Aviation (DGCA) has introduced a directive aimed at potentially reducing the base fare of flights by unbundling certain services. The directive, dated April 23, 2024, emphasizes the need for passengers to have the option to select only the services they require, thereby making air travel more cost-effective.

Understanding the Opt-In ProcessIn the opt-in process, passengers actively choose the specific services they wish to avail themselves of, thereby customising their travel experience according to their preferences and budget. This approach ensures transparency and flexibility for passengers.

Identified Unbundled ServicesDGCA has outlined seven services that, if unbundled from the ticket cost, have the potential to make airfare more affordable:

1. Preferential seating

2. Meal/snack/drink charges (except drinking water)
3. Charges for using airline lounges
4. Check-in baggage charges
5. Sports equipment charges
6. Musical instrument carriage
7. Fee for special declaration of valuable baggage

Implications of the Unbundling InitiativeThe directive is expected to bring about a shift in fare structures within the aviation sector. While it may not lead to significant across-the-board reductions in airfares, passengers now have greater autonomy to tailor their travel experience to suit their preferences and budget.

According to an ET report, this initiative will empower consumers to make informed choices, potentially reducing their overall travel costs. However, he emphasizes the need for airlines to balance operational adjustments with innovative revenue management strategies to maintain profitability.

Seating Arrangement for ChildrenIn addition to the unbundling of services, DGCA has mandated that children up to 12 years of age must be seated with at least one of their parents or guardians who are traveling on the same PNR. While this ensures the safety and comfort of young travelers, it may have implications for ticket pricing and seat allocations.