Now Bid For A Business Class Upgrade In Air India: Airline Introduces Auctioning To Promote Transparency

The Air India’s Boeing 787-800 Dreamliner is been given a traditional water cannon salute by the fire tenders upon its arrival at the airport. (Parveen Negi/India Today Group/Getty Images)

Passengers who wish to upgrade their seats to business class will have to offer a bid to secure their spot, Financial Express has reported . This is being done as a part of a new scheme to enable transparency. Without having to shell out the minimum fee, passengers can upgrade their seats now through the auction.

This model works in such a way where an economy class passenger can offer a particular sum of amount to bid for a business class seat. If it turns out that the passenger has offered the highest bid, he/she will be given the upgrade.

Previously, Air India used to charge up to Rs 6,000 for the required upgrade on domestic flights and $200-1,000 on international destinations. Due to 40 per cent of the seats going vacant on the business class, the airline has been facing a financial crunch for quite a while now.

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Air India hopes to generate a revenue of rupees one crore per day after the scheme is fully functional. The airline has been facing a loss of Rs 5,756 crore by March 2017 and in this fiscal year, the government has pumped in Rs 2,000 crore so far.

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