Levy on check-in baggage likely

MUMBAI/BANGALORE: Are you are one of those who likes carrying your world with you? Then be very careful. If Jet Airways’ top honcho Naresh Goyal is to be believed, carriers may soon start charging money for your check-in luggage. In response to reporters’ queries on this issue, Goyal said in Berlin, “All airlines which want to stay in business will have to take such decisions.”

Airlines have been looking at exploring newer revenue streams to tide over the unprecedented level of costs resulting from oil at $130 a barrel. In a step which showed just how desperate airlines are, carriers abroad, especially those in the US, announced last week that they will charge $15 for check-in baggage. Aviation experts believe that such steps not only bring in additional revenue, but are also beneficial for carriers as passengers try and cut down on luggage, resulting in savings through reduction in the weight.

But not everybody agrees. A Raghunathan, CFO, Kingfisher Airlines says, “I don’t think it is a workable solution...You already take such a long time to check in and such steps would only complicate matters. If you want more money, you can always increase fares.”

Partha Sarathi Basu, CFO, SpiceJet, says, “As of now we are not discussing the issue.”
What seems to be pretty clear is the fact that ticket prices will go up, with charges on check-in baggage or without them. Goyal said that fare hikes were inevitable with cooperating costs going through the roof due to high prices of Aviation Turbine Fuel (ATF). He adds, “The aviation industry has to raise the fares as and when the hikes come. I am not in a business where I should only look for capacity. At the end of the day, I will have to work to give profits to my shareholders.”