Air India Express has said 30 per cent of domestic bookings on its website is for hand bag only fares and that is contributing to operational efficiency and better on time performance.

In February the airline introduced hand bag only fares and these are available only on its website. While these are cheaper than normal fares, passengers are not entitled for any check-in bags under that fare unless a baggage allowance is purchased separately. 

XpressLite fare has seen a good traction accounting for 30 per cent of domestic bookings on its website.

“ Over 30 per cent of our website bookings for domestic flights are now for XpressLite fares growing from 25 per cent when we launched it a few months ago,” an AI Express spokesperson said.

Lower than normal fares

Airline website accounts for low double digit sales of its total bookings. Currently the hand bag only fare is priced ₹500-1000 lower than normal fares.

While passengers opting for handbag only fare are able to carry check-in bags on making additional payment, only one out of five customers subsequently pre-booked check-in bags, he added.

This has resulted in a reduction in number of check-in bags, reducing the queues at check in counters and baggage collection belts. “While a number of other factors contribute to on-time performance, data reported by Directorate General of Civil Aviation anecdotally shows that in months since the launch of the XpressLite fare, Air India Express was number one or two in one time performance ranking (February-April),” the spokesperson said.

Southern states

“The XpressLite fares are more popular in routes to and from the Southern states. The take-up rate for the fares is higher for round-trip journeys than one-way journeys,” he added.

The zero check-in bag fares were first introduced in India by SpiceJet in 2015 and soon followed by other low cost airlines. However, these did not catch on. Initially the discount offered in zero bag fare was only ₹200.

This also allowed other airlines to match prices and offer free baggage at the same price. The product also faced regulatory challenges on the issue of fees that an airline could charge in case a passenger (who purchased zero bag fare) came to the airport with check-in bags. Later, however, the regulator introduced rules allowing airlines to unbundle fares and charge separately for bags.

“The product has good potential if the difference in fare with bags and without bags is high,” said an aviation industry executive.

“Indian aviation is evolving in a manner which is similar to other parts of world,” another executive added.

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