Should you pay for the luggage you tag along?

What if somebody told you that you can only carry your hand baggage for free? Are you ready to shell out extra for the bag you pack for that vacation, or relative’s house?

The’s (DGCA) decision to allow airlines to offer ancillary services separately might mean just that.
Currently, revenue from non-ticket sources minus cargo is minimal. It accounts for less than 1% percent of the total revenue of Indian airliners. That is set to change soon.

With , Indian flyers would pay separately for the check-in luggage they carry. The rates would be as per the airline’s discretion.

Most experts believe that if implemented properly to the level of international benchmarks, the service would help lower fares and add huge incremental value to ailing Indian airlines.

“There are huge segments in ancillary value chains that airlines can leverage. It is critical for sustainability and would help airlines keep their rates subsidized”, Kapil Kaul, CEO, CAPA India observes.

(Image credit: Indiatimes)