Media365
Air India has decided to introduce a “Basic” fare class, effective immediately. The airline — jointly owned by the Tata Group and Singapore Airlines (SIA) — is currently battling severe losses from the last fiscal year alongside headwinds from rising oil prices due to the West Asia conflict, a depreciating rupee, and pressure on demand.
Under this new structure that is being tested, the airline has created a “Basic” tier within its Economy class where the fare excludes on-board meals, though passengers will still be served tea and coffee.
This move echoes a concept Vistara introduced in 2018 under the “Economy Lite” banner, which was quietly dropped later.
Essentially, Air India will now offer four classes of service on its narrowbody aircraft: Business Class, Premium Economy, Economy Class (with full meal service), and Economy Basic (with tea/coffee but no meals). The Economy Basic fares are expected to be priced the lowest in a bid to poach passengers from traditional low-cost rivals like IndiGo, which do not offer complimentary meals.
The concept of a full-service carrier in India has historically been inextricably linked to the warmth of a hot meal served in the air. In a culture deeply rooted in hospitality and food, premium ticket pricing was justified not just by a seat and a baggage allowance, but by the rhythm of the cabin crew rolling a catering cart down the aisle.
However, these changes to the Economy cabin could confuse passengers. It may also slow down inflight services, as the crew must now verify whether a passenger is entitled to a meal. This pivot represents a seismic shift for the Maharaja, an airline historically famous for its lavish hospitality.
Air India is framing this change as a pro-consumer approach, offering cheaper fares for budget-conscious travellers without impacting those who wish to maintain the traditional full-service experience. Rather than a new class of service, the airline views it strictly as a “fare class.”
While Vistara previously utilised a buy-on-board menu card, Air India’s Basic fare passengers will instead have the option to pre-purchase meals up to 24 hours before departure, with vegetarian, non-vegetarian, Jain, and diabetic options available.
Echoes of the past
Is this a case of déjà vu in the Indian skies? Air India appears to be following the remnants of legacy carriers that tried—and failed—to balance premium architectures with brutal pricing pressures in a market dominated by low-cost carriers. Both Kingfisher Airlines and Jet Airways attempted similar models in the past, only to revert to a uniform full-service experience before eventually collapsing at different times.
The structural ghosts of Jet Airways, JetLite, Kingfisher Airlines, and Kingfisher Red serve as profound cautionary tales for Air India’s new strategic gamble. Like its predecessors, Air India already operates a fledgling low-cost subsidiary in the form of Air India Express.
For nearly two decades, Jet Airways was the gold standard of Indian corporate aviation, commanding immense loyalty through its premium onboard dining and refined service. However, the rapid ascent of budget carriers forced Jet Airways into a defensive crouch.
Following its 2007 acquisition of Air Sahara—rebranded as the low-cost subsidiary JetLite—the group began experimenting with hybrid models. In 2009, they introduced Jet Konnect, a no-frills service where economy passengers did not get complimentary hot meals and were offered a limited, box-meal buy-on-board menu instead.
While Air India’s current offerings are structured differently from what Jet Airways or Kingfisher did, the move could still trigger confusion. Nonetheless, Air India seems to be attempting to balance the lessons of the past with the demands of the present in a more controlled manner.
Communication is the key
Air India is treating this launch as a pilot rollout on select routes to assess customer response and feedback before expanding it network-wide. For now, the new fare family is available exclusively for bookings made via the airline’s direct channels: its website, mobile application, contact centres, and airport ticketing offices.
Traditionally, even under government ownership, Air India operated strictly as a full-service carrier utilising two-class or mono-class configurations. Because a similar unbundling created confusion among Vistara passengers before its discontinuation, communication will be vital. For passengers unaware of the new fare restrictions—particularly those whose tickets are booked by third-party agents—the lack of a meal may come as an unwelcome surprise.
The airline is clearly targeting traffic that typically opts for IndiGo or other competitors based entirely on price. While Air India can make this fare class highly competitive, it must be mindful not to undercut fares to the point that the discount exceeds the actual cost of the food omitted.
Interestingly, European full-service carriers have long limited their economy class offerings, irrespective of the fare class, typically providing only a drinks service accompanied by a cookie or chocolate. If this new fare class proves successful, it raises a compelling question: will Air India eventually move in the same direction as its European compatriots?
