Indian Carriers Prepare Unbundling Strategies

By Jay Menon
Source: AWIN First

Several private airlines including SpiceJet and Indigo had been charging passengers extra for seat selection until the government barred it from doing so in 2011.

Malaysia’s AirAsia and many other global low-cost airlines derive a significant portion of their revenue from a la carte charges. AirAsia wants to invest 810 million rupees in a domestic Indian passenger airline that it plans to launch jointly with India’s Tata Sons Ltd., and the Malaysian budget carrier is expected to replicate its global model of charging for extra services in its India operations.

AirAsia will hold a 49% stake in the Indian venture, which is expected to launch this year once it gets all the necessary approvals.

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