Airlines set targets for excess baggage fee

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Mumbai, Nov 24: Thanks to the propensity of Indians to carry heavy luggage every time they travel abroad, airlines are now setting targets for minting money from excess baggage carried by passengers.

This could be a welcome avenue for airlines burdened with increased fuel prices and declining passenger fares with the entry of new airlines, particularly in the domestic segment.

For Jet Airways, revenues from excess baggage increased from Rs 29 crore in fiscal 2003 to Rs 42 crore in 2005, registering a 45% growth, while India’s flagship carrier Air-India earned Rs 50 crore in the year 2004-05. On domestic routes, an excess baggage fee applies if luggage exceeds 30 kg for economy class and 40 kg for business class. Baggage allowances on international flights are usually much more restrictive in nature.

Low cost carriers like Air Deccan have even set targets to extract revenue from excess baggage charges. Air Deccan chief operating officer Warwick Brady states, “Our target is to generate a revenue of Rs 30 per passenger from 3.5 million passengers in the current fiscal and Rs 50 per passenger from 8 million passengers to be carrier in the fiscal 2006-07.”

According to Air-India’s spokesperson Jitender Bhargava, “Excess baggage charge is imperative since heavier airplanes consume more fuel. We are also losing out cargo revenue when extra baggages are accommodated instead of commercial cargo.”