{"id":141321,"date":"2026-05-02T13:08:00","date_gmt":"2026-05-02T07:38:00","guid":{"rendered":"https:\/\/aviationa2z.com\/?p=141321"},"modified":"2026-05-02T05:58:55","modified_gmt":"2026-05-02T00:28:55","slug":"air-india-may-cut-fares-with-meal-unbundling-strategy","status":"publish","type":"post","link":"https:\/\/aviationa2z.com\/index.php\/2026\/05\/02\/air-india-may-cut-fares-with-meal-unbundling-strategy\/","title":{"rendered":"Air India May Cut Fares with new Meal Unbundling Strategy"},"content":{"rendered":"\n

NEW DELHI\u2014<\/strong> Air India (AI)<\/a> is preparing to introduce \u201clite fares\u201d that could make onboard meals optional on domestic and short-haul international routes, as the airline seeks to manage rising costs and protect demand.<\/p>\n\n\n\n

The move is expected to roll out in the coming months and could reduce ticket prices for passengers who opt out of bundled services.<\/p>\n\n\n\n

The proposal will apply primarily to flights under two hours, including key routes operating from hubs such as Indira Gandhi International Airport (DEL)<\/a>. <\/p>\n\n\n\n

Alongside meals, the airline is also evaluating the option to unbundle lounge access for premium passengers, marking a notable shift in its traditional full-service model.<\/p>\n\n\n\n

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Photo: Air India<\/figcaption><\/figure>\n\n\n\n

Air India’s Meal Unbundling Plan<\/h2>\n\n\n\n

Air India\u2019s plan to unbundle meals reflects growing financial pressure from rising aviation turbine fuel prices and currency fluctuations. <\/p>\n\n\n\n

By removing meals from the base fare, the airline aims to offer lower entry-level ticket prices, with potential savings of over Rs 250 per passenger.<\/p>\n\n\n\n

The strategy aligns with a broader industry trend where carriers separate services to give passengers more pricing flexibility. Under the new structure, passengers will still have the option to purchase meals, but only if they choose to do so.<\/p>\n\n\n\n

This change is particularly relevant in India\u2019s price-sensitive market, where even small fare increases can influence travel decisions. The airline believes that offering stripped-down fares could help maintain passenger volumes despite cost pressures.<\/p>\n\n\n\n

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Photo: Air India<\/figcaption><\/figure>\n\n\n\n

Lounge Access Changes to Air India<\/h2>\n\n\n\n

In addition to meals, Air India is exploring the idea of unbundling lounge access for business class travelers. <\/p>\n\n\n\n

Currently included in premium tickets, lounge services may soon become optional, allowing passengers to pay only if they intend to use them.<\/p>\n\n\n\n

Industry estimates suggest lounge access costs airlines between Rs 600 and Rs 1,400 per passenger, depending on the airport, Times of India<\/a> flagged.<\/p>\n\n\n\n

Many frequent business travelers skip lounges due to tight schedules, which makes the bundled offering less relevant for a segment of customers.<\/p>\n\n\n\n

If implemented, this approach could reduce ticket prices for premium passengers while helping the airline control operational expenses. Similar cost-cutting strategies have already been adopted by banks, which have reduced complimentary lounge access on credit cards.<\/p>\n\n\n\n

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Photo: Devin | BoeingSCSpotter<\/figcaption><\/figure>\n\n\n\n

Air India’s Cost-Pressure Strategy<\/h2>\n\n\n\n

The shift toward unbundled services comes as Air India faces significant financial and operational challenges. <\/p>\n\n\n\n

The airline reportedly incurred losses of around Rs 24,000 crore in the last fiscal year and continues to deal with disruptions linked to geopolitical tensions in West Asia.<\/p>\n\n\n\n

Airspace restrictions have forced longer flight paths to Europe, the UK, and North America, increasing fuel burn and operational costs. At the same time, the weakening rupee has further inflated expenses, intensifying the need for cost management.<\/p>\n\n\n\n

To improve revenue streams, the airline group is also focusing on its low-cost arm, Air India Express, which operates high-density aircraft without complimentary meals or lounge access.<\/p>\n\n\n\n

Additional measures, such as onboard and boarding pass advertising, are also under consideration.<\/p>\n\n\n\n

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Photo: Air India<\/figcaption><\/figure>\n\n\n\n

Bottom Line<\/h2>\n\n\n\n

Air India\u2019s move toward unbundled pricing signals a clear shift from its traditional full-service model to a more flexible, cost-conscious approach. <\/p>\n\n\n\n

By making meals and lounge access optional, the airline aims to balance affordability for passengers with tighter control over rising operational expenses.<\/p>\n\n\n\n

Stay tuned with us. Further, follow us on social media for the latest updates.<\/p>\n\n\n\n

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