Air India introduced a new 'Basic' fare category on select domestic routes on Tuesday, aiming to offer lower ticket prices by removing complimentary meals for economy passengers. The airline retains baggage allowances in this tier, targeting price-conscious travelers who prefer to pay only for essential services, according to livemint.com.
The 'Basic' fare is the fourth tier in Air India's domestic booking structure and is currently being trialed on select routes. This option allows passengers to purchase add-ons such as meals separately, providing flexibility in travel costs. The move is part of Air India's strategy to cater to a wider range of customer preferences while maintaining competitive pricing in the domestic market, the report said.
This development aligns with trends among Indian carriers to diversify fare options and appeal to budget travelers amid rising competition. By unbundling services like meals, Air India joins other airlines offering no-frills pricing models to attract cost-sensitive passengers. The new fare category could influence pricing strategies across the sector, potentially reshaping how domestic airfares are structured in India, according to livemint.com.
Air India’s announcement came on June 16, 2026, with the 'Basic' fare now available for booking on select domestic flights. The airline's next quarterly financial results, due in late July, will provide insight into the market response to this pricing strategy, as reported by livemint.com.