The Federation of Indian Airlines (FIA), which represents the three carriers, has appealed to the Civil Ministry to withdraw the decision.
Air India, IndiGo and SpiceJet have raised strong concerns to the government’s directive mandating free seat selection for at least 60% of seats on flights, warning that the decision could push up ticket prices.
The Federation of Indian Airlines (FIA), which represents the three carriers, has appealed to the Civil Ministry to withdraw the decision.
In a communication to Civil Aviation Secretary Samir Kumar Sinha, the industry body warned that the directive could have unintended consequences for the aviation sector.
According to FIA, the financial impact of the move would be “significant,” forcing airlines to compensate for lost revenue by increasing fares. “As a result, all passengers, including those who may not wish to preselect seats, will end up paying higher fares,” the body stated, as quoted by PTI.
Airlines raise concerns about revenue loss and operational pressure
Airlines argue that seat selection fees are a key part of their ancillary revenue, especially in a high-cost operating environment. Rising expenses such as fuel, maintenance and airport charges have already put pressure on margins, making such income streams crucial for financial sustainability.
The FIA also stated that restricting ancillary revenue could weaken market-driven pricing and limit airlines’ flexibility. It also cautioned that the decision may end up hurting affordability, particularly for price-sensitive travellers, as cost get passed on through higher base fares, as reported by DNA.
The industry body further highlighted that broader challenges, including rising aviation turbine fuel prices and operational disruptions linked to geopolitical tensions in West Asia.
Industry calls for rollback, flags lack of consultation
The airline grouping has also slammed the absence of stakeholder consultation before the announcement. It also warned that such regulatory intervention could set a precedent for increased control over airline pricing structures.
“If applied, this measure will set a precedent for extensive intervention in ancillary pricing…creating uncertainty for airlines regarding future regulatory constraints,” FIA stated, urging the government to reconsider the directive, as reported by PTI.
What is the government’s 60% free seat rule?
According to the Ministry of Civil Aviation, the move is part of a broader push to enhance passenger convenience and transparency in air travel. As per the statement released by PIB, airlines have been directed through the DGCA to ensure that at least 60% seats on every flight are available for selection free of charge.
The policy aims to provide fair access to flyers and address concerns over high seat selection charges, which typically range from Rs 2,00 to 2,100 depending on the seat type. The government has said that the directive is part of a wider passenger-centric measure, including ensuring families on the same PNR are seated together. Another aim is to enhance transparency in airline services and strengthen passengers’ rights in cases of delays and cancellations.
Credits: Air Indigo
