Transport and Infrastructure Law Update:2016

1. Unbundle of Fees and Services by Scheduled Airlines: DGCA vide notification dated June 10, 2016, which came into effect from July 1, 2016 with respect to Rule 135(1) of Aircraft Rules, 1937 (“Rule”). The Rule says that every air transport engaged in scheduled air services shall establish tariff-having regard to all relevant factors-cost of operation, characteristic of services, reasonable profit and generally prevailing tariff. As the airfare include services provided by the airlines therefore unbundling the services and charges thereto has the potential to make basic fare more affordable and provides option to the consumer to pay for the services they wish to avail. It has been decided by the government to charge the following services on opt basis:

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The guidelines for unbundling of services are as follows:

  • The services unbundled should be distinct, clear and non-ambiguous and descriptive.
  • Clear information of services to customer.
  • Special package for carrying sports and musical instruments for national and international players.
  • Charges of unbundled services should be of fixed amount and cannot vary with base fare.
  • Details of unbundled services to be duly reflected on the website of airlines.
  • No discrimination for passengers with disability/ reduced mobility.
  • If the charged services are not rendered the same would be sole responsibility of the airline to refund for the same.
  • Regulatory procedures to be strictly followed for pre-assigning emergency seats.
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