The Directorate General of Civil Aviation, (DGCA) on April 24, 2024, issued a notification related to Unbundle of services and fees by scheduled airlines.
Sub-rule (1) of rule 135 of the Aircraft Rules, 1937 states that every air transport undertaking engaged in scheduled air services shall establish a tariff having regard to all relevant factors, including the cost of operation, characteristics of service, reasonable profit and the general prevailing tariff.
The airfares established by the airlines also include charges for some of the services they rendered. Based on various feedback received, it is felt that many times these services provided by the airlines may not be required by the passengers while travelling. Because unbundling of services and charges thereto has the potential to make basic fare more affordable and provide the consumer an option of paying for the services which he/she wishes to avail, it has been decided by the Government to allow the following services to be unbundled and charged separately on an opt-in basis:
•Preferential seating
•Meal/snack/drink charges (except drinking water)
•Charges for using airline lounges
•Check-in baggage charges: As part of airline baggage policy, scheduled airlines will be allowed to offer free baggage allowance and "Zero baggage/no check-in baggage fares". This will be subject to the condition that the passenger booking the ticket under such fare scheme is made aware of the charges applicable if the passenger turns up with the baggage for check-in at the airline counter. These applicable charges shall be reasonable; prominently displayed to the passenger at the time of booking of the ticket and also to be printed on the ticket."
•Sports equipment charges (vi) Musical instrument carriage
•Fee for special declaration of valuable baggage (allow for a higher unit on carrier liability)
Although scheduled airlines are free to fix the charges/fees for the unbundled services, DGCA reserves the right to intervene and stop the scheduled airlines from charging for any specific unbundled service if principles such as opt-in, transparency, non-discrimination are found to be violated by the airlines.
This supersedes Air Transport Circular 01 of 2021 dated 23rd February 23 2021.
[Notification No. 1 of 2024]
