DNA Money Edit: Why airlines want to levy web check-in

The loss-making airlines in India are desperately looking at all options to enhance revenues from ancillary services. The recent move by the market leader IndiGo and rival Spicejet, both low-cost carriers, to levy an additional amount for booking seats through web check-in has irked flyers. Their protest on social media has subsequently forced the government to announce an investigation to find whether the move is within the regulatory framework. The airlines defended the move saying they are only following global practices.

According to the aviation consulting firm CAPA, Indian carriers could collectively end up losing over $1.9 billion during the current fiscal. They will require fresh funding in order to sustain and compete in India, one of the fastest growing aviation markets in the world, where fuel makes up for more than 40% of the operating cost while margins remain wafer-thin. The rise in fuel cost in the past several months, combined with unsustainable low fares, had made the airlines scurry for cover.

Indian flyers believe that web check-in is a privilege that comes with the booking of a ticket. Airlines, on their part, may want to gently remind flyers that there are no free lunches. The fact is that if airlines continue to bleed and flounder, flyers may be at the receiving end.