
IndiGo, India's top domestic airline, revealed on Wednesday that it is launching a new set of lower fares aimed for passengers travelling with only cabin baggage. This announcement comes at a time when carriers are seeking to unbundle services in order to lower ticket prices.
Air India, IndiGo's chief rival, also introduced a basic economy fare without complimentary meals last month for "price-conscious travellers".
"Customers will enjoy a lower base price with an auto-assigned seat at no additional cost, and a cabin bag allowance of up to 7 kgs," the airline, which is operated by InterGlobe Aviation, said in a release on Wednesday.
"Designed for customers who travel light and would like to pay only for the services they need, IndiGo Lite is another step towards building a strong, fit-for-purpose product portfolio. This reflects our agility in responding to the market dynamics while reinforcing our commitment to making travel more accessible and affordable for our customers," IndiGo's Chief Strategy Officer Aloke Singh said.
The new entry-level fare of IndiGo is being called 'IndiGo Lite'. It is a cabin bag-only fare for the airline's economy class customers.
The fare will be applicable for more domestic as well as international flights, and will be available for booking on the airline's app or website starting 1 July, and will be eligible for travel effective 15 July.
This new fare level will provide customers with a lower base price along with an auto-assigned seat at no extra cost, along with allowance of upto 7 kg of cabin baggage.
Such a system was already available on booking through Air India Express' direct channels.
This news also comes as the government on Wednesday revised the Aviation Turbine Fuel (ATF) for Indian domestic airlines, reducing it by ₹5 per litre, with the effective price being brought down to ₹110 per litre.
Earlier on Tuesday, the Centre revised export duties on petrol, diesel and Aviation Turbine Fuel for the fortnight starting July 1, while keeping excise duty on petrol and diesel sold in India unchanged.
The Ministry of Finance on Tuesday issued two notifications updating the Special Additional Excise Duty (SAED) on fuel exports. The move is part of the fortnightly review of export levies, introduced on March 27 to ensure domestic availability of petroleum products by discouraging exports amid the West Asia crisis.
IndiGo on Tuesday announced the resignation of its Chief Human Resources Officer Sukhjit Singh Pasricha, who has been with the airline for over eight years, and will be replaced by Kanwal Jeet Singh Bakshi.
Bakshi is currently the Group Head of Human Resources at InterGlobe Enterprises.
The resignation of Pasricha marks another senior-level exit at the country's largest airline
With agency inputs
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