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This week, Etihad Airways announced a huge overhaul to their luggage plan. On certain middle eastern routes, travellers will be able to buy a ticket known as an Etihad baggage “deal fare” – a cheaper ticket with a proviso – that you only get to take on hand luggage. So how will this work and what are your limits – let’s find out.

How does the new Etihad baggage system work?

For many of us, checking in and picking up luggage is a time-spend we’d like to avoid. So news of the Etihad hand luggage only fare comes as a welcome surprise. Right now, you can choose to leave your check in at home and take 1 small bag and 1 personal item with you onboard – the classic 7kg bag and laptop – but you don’t get any price reduction for it. However, according to the press release, passengers will soon be able to take the same inflight allowance on board for a cheaper price.

Where can I fly hand luggage only with Etihad?

The first destinations to offer the deal are middle eastern – Jordan, Lebanon, Egypt, Abu Dhabi, Bahrain, Kuwait, Oman, Saudi Arabia, and Azerbaijan. These are the business routes and this is a smart move. Cutting down on luggage going into the plane will reduce delays, and business fliers tend to be in and out within one or two days – meaning they’re travelling light anyways. The airline has only announced these routes so far, but many are speculating this is the just the extended pilot program. A wider roll out could be around the corner.

Why is the airline introducing cheap Etihad fares?

In the last couple of years, Etihad has restructured its business vision. The flag carrier had previously intended to be a big, luxury, international player. But with so much neighboring competition from established brands such as Emirates and the on-going disputes over where they can fly, they were forced to go lean.

These new baggage only fares are a sensible move towards supporting a more efficient product model. According to Etihad Airways Chief Commercial Officer Robin Kemark, a small trial of the system was played out last year with good results. And since then they’ve tweaked and perfected the model to suit Etihad customers.

Can I add checked luggage to my luggage only ticket?

This was one of the stipulations Etihad realized passengers wanted. Therefore, if a guest has purchased the “deal fare” and later finds they need to add luggage, they may. They can buy it at check-in or for 20 per cent less in advance, online.

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In addition, Passengers with an Etihad Guest status can check in luggage for free on the Deal Fare, as follows:

Silver: 10kg

Gold: 15kg

Platinum: 20kg

News of the Etihad hand luggage only fare comes just months after the airline announced a seat selection fee on all economy class tickets. With this option you can also now choose, neighbor-free seats, extra legroom seats or preferred seating.

And while some commentators are saying this is all pointing to Etihad going the way of premium-budget, we’re not too sure. When baggage and seating is important, I’m happy to pay the extra. I’m also happy to save my money when it’s not.