AirAsia flies into DGCA turbulence

AirAsia India's plan to unbundle services has hit a Directorate General of Civil Aviation (DGCA) hurdle, with the aviation regulator on Tuesday asking the airline to withdraw all fees and charges, as these were introduced without informing DGCA.

"AirAsia India has introduced a lot of charges such as baggage charge; we have asked the airline to withdraw charges since they introduced these without informing us," said a ministry official. He added representatives of the airline had convened a meeting on the issue on Wednesday.

AirAsia did not respond to a message seeking comment.

While airlines in India are allowed to unbundle services (charge for services), they have to inform the aviation regulator before they introduce any such charge.

AirAsia India has announced it will launch services between Bangalore and Goa on June 12. The company has done away with free check-in baggage. The charge for any check-in baggage weighing up to 15 kg is Rs 199 if this is paid during ticket-booking and Rs 300 if the payment is made at an airport counter.

In India, low-cost carriers offer free check in baggage of up to 15 kg.

AirAsia India has announced it will offer tickets at prices up to 35 per cent cheaper than those offered by others.

The entry of AirAsia India has been opposed by existing carriers.

The Federation of Indian Airlines has moved the high court here, challenging the permit to the airline on the grounds that the relaxed norms on foreign direct investment do not allow any greenfield airline into the country.