The Government of India has temporarily suspended its recent directive that required airlines to offer at least 60% of seats free of charge for selection. The move comes less than three weeks after the rule was introduced to enhance passenger convenience.
The Ministry of Civil Aviation confirmed that the provision has been placed “in abeyance till further orders” while a detailed review of the policy is carried out.
Why the Rule Was Rolled Back
The decision follows strong representations from airline operators and industry bodies, including the Federation of Indian Airlines (FIA) and Akasa Air. These stakeholders raised concerns about the potential impact of the rule on airline pricing structures.
According to industry feedback, mandating a high proportion of free seat selection could disrupt the current fare model. Airlines rely on ancillary charges, such as seat selection fees, to maintain competitive base fares.
Background of the Original Rule
On March 17, the government had directed airlines to:
- Provide at least 60% of seats without additional selection charges
- Ensure passengers on the same booking are seated together whenever possible
- Improve transparency in passenger services
The initiative aimed to standardise airline practices and improve the travel experience for passengers.
Fuel Price Pressures Also a Factor
The rollback comes at a time when the aviation sector is facing increased financial pressure due to rising global fuel prices. The government has also introduced a cap on monthly increases in aviation turbine fuel (ATF) prices for domestic flights, limiting hikes to 25%.
These developments are linked to broader global challenges, including disruptions in energy supply chains due to the ongoing West Asia conflict.
What Remains Unchanged
Despite the suspension of the free seat selection rule, several passenger-focused measures from the March 17 circular will continue to apply. These include:
- Mandatory co-seating for passengers on the same booking (PNR)
- Transparent policies for carrying sports equipment, musical instruments, and pets
- Clear disclosure of all applicable charges
Industry Perspective
Currently, airlines in India offer only a limited number of seats—typically between 5% and 15%—without additional fees. Premium seats, such as those in front rows or window positions, are usually priced higher.
Industry bodies have argued that removing seat selection charges could lead to unintended consequences. Airlines may compensate for lost revenue by increasing base ticket prices, which could ultimately affect all passengers.
Additionally, the FIA cited a 2017 Delhi High Court ruling that supports unbundled pricing. This model allows airlines to charge separately for optional services, provided pricing remains transparent and non-discriminatory.
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