Tata Group’s Air India restructures its airfare policies across all cabin classes

Gurugram: India’s flag carrier Air India has rolled out a more ‘simplified and enhanced fare structure’ across its cab classes as part of a broader push to offer more customised travel options. The revamped fare families, effective October 17 this year, include eight categories across Economy, Premium Economy, Business, and First Class.

Under the new system, passengers can select from various product and service bundles customised to meet their needs, the airline explained in a statement issued Monday. It added that it has moved away from a ‘one-size’ fits all offering, calling it ‘increasingly redundant’.

In Economy class, for example, passengers can choose from Value, Classic, and Flex fares, with similar options available in Premium Economy, Business, and First Class. Those seeking a more affordable option can book a ‘value’ fare with limited flexibility and one piece of checked baggage. However, those seeking more flexibility and additional baggage allowance can upgrade to ‘classic’ or ‘flex’ fares.

In exchange for an upsell, each fare family offers increasing benefits, such as baggage allowance and flexibility around cancellations and date changes.

The airline’s fare families are now available on all domestic and international flights, including flights to and from the UAE.

Nipun Aggarwal, Air India's Chief Commercial Officer, said, “We have rebranded and simplified the fare families to provide a unique product and service value proposition at each price point.”

He added, “We have also redesigned and relaunched market-specific fare families, which cater to unique customer preferences across geographies. This is a move away from the traditional one-size-fits-all offerings approach, which is becoming increasingly redundant and addresses the evolving preferences of today’s travellers.”

Europe, UK fares

Air India has also restructured its fare families on Europe and UK routes. Travellers can opt for a more affordable Value fare option, which provides one piece of checked baggage weighing 23kg with limited travel flexibility.

“Travellers who seek more baggage allowance and higher travel flexibility can opt for the Classic and Flex fares that continue to offer two pieces of checked baggage weighing 23kg each in Economy,” it said.  Value fares are available only for Economy class bookings.

The airline said that regardless of the passenger's fare family, travellers will receive a full-service flying experience onboard. “Air India offers all its guests complimentary hot meals, free check-in baggage allowance in addition to carry-on bag allowance, and reward points to members of Air India’s Flying Returns loyalty programme,” it said.

Order for more aircraft

Earlier this month, Reuters reported, citing industry sources, that Air India has continued a dramatic bid to recapture a place among top carriers by placing a new order for 85 Airbus, and now eyes more Boeings on top of an historic purchase of almost 500 jets from the two planemakers.

The Airbus order emerged in a routine industry update as the national carrier mourned the death of the former chairman of parent Tata Group, business and aviation pioneer Ratan Tata.

Airbus said an unnamed customer had placed an order for 75 A320-family jets and 10 long-haul A350s - a deal worth $6.3 billion after typical discounts, according to Cirium Ascend data. Airlines frequently keep their names under wraps to avoid revealing their fleet strategies to competitors. The Reuters report also said that the airline is in talks with Boeing for a top-up order.

Since the airline’s return to the Tata Group fold, the company has embarked on a five-year transformation journey called Vihaan. AI.  The first two phases of this transformation, Taxi and Take-off, were focused on fixing the basics and building foundations for growth. The airline has entered the Climb phase, focusing on achieving excellence in operations and customer experience.