Changing dynamics: Is low-cost flying becoming really high cost?

With Indian airlines readying themselves to face fierce competition from their foreign peers, the domestic aviation landscape is changing fast. Is this going to be really advantageous for the consumer?

Theoretically and practically, increasing competition should result in lower prices and more choice for consumers. But as far as the Indian aviation is concerned, consumers may have to pay a high price for both the lower price and increased choice.

Consider this: Air India and Jet Airways have already reduced their free baggage limit for (domestic flights) to 15 kg. For every kg above 15 kg on these flights, one will have to pay Rs 250. IndiGo will charge Rs 500 for seat numbers one and two in the front row, and those at the emergency exit.

This is not all. According to a report in the Times of India today, Air India has also increased the charges for no-show, cancellation and itinerary change.

As per the report, for economy class, for any change in ticket date, one will have to pay Rs 1,500, double the earlier charge. These are non-refundable if you are not showing up. For the mid-range fare bucket, the charge has again been doubled to Rs 1,000.

“These charges have been hiked as an attempt to help us keep offering low base fares to passengers and keep flying affordable,” a senior Air India official has been quoted as saying in the report.

On 30 April, permitting airlines to unbundle services, the civil aviation ministry had said it “has become a necessary aspect of exercising more control over operational costs and running a successful airline.”

The rule, which is seen help the companies make $500 million as ancillary revenue, allows airlines to charge extra for pre-booking seats, check-in baggage, transporting sports and musical equipment or any other high value baggage.

Aviation Minister Ajit Singh had also said the move will bring down basic fares, a report in Business Standard said yesterday. It also quoted SpiceJet CEO Neil Mills as saying that it is unlikely to happen anytime soon.

“In an ideal environment, base fare should come down. Bu that would take time,” he told the newspaper.

So, fasten your seat belts and sit tight when flying the high priced low cost.