Airlines oppose 60% free seat rule, warn of possible rise in ticket prices
PTC Web Desk: A new government directive requiring airlines to offer 60 per cent of seats free of charge selection has sparked strong objections from domestic carriers, who say the move could eventually make flying more expensive for passengers.
The Federation of Indian Airlines (FIA), which includes major carriers like IndiGo, Air India and SpiceJet has written to Civil Aviation Secretary Sameer Sinha expressing concern over the financial implications of the decision. According to the industry body, the rule could significantly impact airline revenues, forcing companies to adjust ticket pricing to offset potential losses.
In its communication, the FIA said while the directive appeared passenger-friendly on the surface, it might produce the opposite effect in the long run. Airlines rely on ancillary services such as paid seat selection as an important source of income, and limiting this could disturb their pricing structure.
The association also raised questions about regulatory boundaries, arguing that decisions related to pricing and seat allocation fall within the commercial domain of airlines. It cautioned against what it described as increasing intervention in operational matters.
Further, the FIA pointed out that the Directorate General of Civil Aviation (DGCA) may not have the legal authority to regulate charges related to optional services, citing past court observations on the issue.
Airlines believe that the directive, if implemented, could reduce flexibility in pricing strategies and limit the ability of carriers to offer differentiated services. This, in turn, may affect passengers who prefer choosing airlines based on comfort, convenience, or additional features.
The body also disputed claims that airlines were consulted before the announcement. It stated that the directive came as a surprise and that there was no structured discussion with stakeholders prior to its release on March 18, 2026.
Urging the government to review the decision, the FIA warned that such measures could create uncertainty in the sector and set a precedent for further regulatory control over pricing. It has called for the directive to be withdrawn, stating that any policy change should balance passenger interest with the financial sustainability of airlines.
- With inputs from agencies
