In a quick policy reversal, the government has put on hold its earlier order requiring airlines to offer 60% seats free of chargejust weeks after announcing it. The decision comes after strong pushback from airlines and concerns over rising costs in the aviation sector.
What Was the Original Rule?
Earlier in March 2026, the government had directed airlines to:
- Offer at least 60% of seats free of seat selection charges
- Increase transparency in pricing
- Ensure families are seated together
This was meant to reduce extra charges and make air travel more affordable for passengers.
What Has Changed Now?
The government has now put the rule “in abeyance” (temporarily paused).
- Airlines are no longer required to offer 60% seats for free
- The rule will not be implemented from April 20 as planned
- The earlier system (around 20% free seats) continues for now
This means passengers will continue to see paid seat selection options on most flights.
Why the Government Took a U-Turn
The rollback is mainly due to pressure from airlines and industry concerns:
- Airlines argued the rule would hurt ancillary revenue (income from add-ons like seat selection)
- They warned it could lead to higher base ticket prices
- Rising costs due to fuel prices and global tensions added to the pressure
In short, airlines said:
“If we can’t charge for seats, we’ll have to increase fares.”
Financial Stress in Aviation Sector
The timing of the rollback is important:
- Aviation fuel costs are rising due to global geopolitical issues
- The rupee is weakening, increasing operational costs
- Airlines are already operating on thin margins
The government likely stepped back to avoid further financial strain on airlines.
Is the Rule Cancelled Permanently?
No — the rule is not cancelledjust paused.
- The government has said it will review the policy further
- A revised or modified version may come later
- The goal remains balancing passenger benefits vs airline viability
What This Means for You
For passengers:
- You will still have to pay for many seat selections
- Free seats remain limited (around 20%)
- Ticket prices may remain stable for now
For airlines:
- Relief from revenue loss
- More flexibility in pricing strategy
Bigger Picture: Policy vs Profit Balance
This episode highlights a larger issue in aviation:
- Government wants fair pricing for passengers
- Airlines need flexibility to stay profitable
Striking the right balance is difficult—especially during a period of rising costs and global uncertainty.
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