In a widely anticipated move, the Tata Group-owned Air India on Tuesday introduced a new 'Basic' fare category for Economy Class passengers on select domestic routes.
While the ‘Basic’ fare category includes a 15 kg checked baggage allowance, 7 kg cabin baggage allowance, and complimentary beverage service (tea/coffee), the complimentary meals are excluded.
Air India said that the Basic fare, currently trialled on select domestic routes, is entirely optional, and travellers continue to have the choice of booking across Air India’s existing fare families - Value, Classic, and Flex - each of which includes complimentary meals and a range of bundled benefits at progressively higher price points.
The introduction of Basic fare simply adds another layer of choice, particularly for price-conscious travellers who prefer a more unbundled offering, added the full-service carrier.
It was widely reported that to cut costs amid surging losses, Air India will axe the complimentary meal service and make it optional. The move comes in the backdrop of curtailed domestic and international operations as higher jet fuel prices, falling rupee and airspace closures continue to wreak havoc on the profitability of India’s aviation sector.
Air India last month announced that it has temporarily reduced its international flight capacity by approximately 27%, cutting around 145 weekly flights between June and August. The carrier also reduced up to 22% of its domestic flights in an effort to cut costs. Singapore Airlines' annual financial statement revealed that Air India's losses stood at about $2.8 billion last financial year (FY26), its biggest annual loss since the airline was taken over by the Tata Group in 2022.
Air India said that by unbundling certain services, it is enabling price-conscious travellers to pay only for what they need, while preserving full-service offerings for those who value an all-inclusive experience.
The Basic fare is currently available on select domestic routes, and Air India will assess customer response and feedback during the pilot phase to guide decisions on the future of the offering.
Travellers booked on Basic fares will have the flexibility to pre-purchase meals up to 24 hours before departure, with options including Vegetarian, Non-Vegetarian, Jain, and Diabetic meals. In the event of a schedule change or reaccommodation, pre-purchased meals will be automatically transferred to the new flight, or fully refunded if unavailable for any reason.