The Ministry of Civil Aviation has performed a swift U-turn, suspending a recent directive that would have forced airlines to offer at least 60 per cent of their seats without a selection fee. The move comes less than three weeks after the rule was introduced as a flagship measure to bolster passenger rights.
In a letter dated April 2 addressed to the Director General of Civil Aviation (DGCA), the ministry confirmed that the provision would be kept "in abeyance till further orders." Officials noted that the decision follows the need for a more "comprehensive examination of the issue," effectively putting the consumer-friendly push on ice.
This sudden retreat appears to be a response to heavy lobbying from the industry. Both Akasa Air and the Federation of Indian Airlines (FIA) — which represents major carriers like IndiGo, Air India, and SpiceJet — raised the alarm over the rule's impact. They argued that such a mandate would disrupt fare structures and clash with India’s deregulated aviation market. The timing is particularly sensitive; the government simultaneously announced a 25 pc cap on monthly increases for aviation turbine fuel, suggesting a broader attempt to steady an industry rocked by soaring oil prices and the logistical headaches caused by the ongoing conflict in West Asia.
The original circular, issued on March 17, was intended to be a win for the travelling public. Beyond the 60 pc free-seat quota, it mandated that passengers on the same booking should be seated together, ideally in adjacent spots, without extra costs. While the seat-selection quota is now suspended, other parts of that circular remain in force. The DGCA will still oversee rules regarding the co-seating of passengers on the same PNR and ensure airlines are transparent about charges for carrying pets, musical instruments, and sports equipment.
At present, Indian carriers rely heavily on ancillary fees. On a standard flight, it is common for only 5 to 15 pc of seats to be available for free during web check-in, with prime spots — such as those at the front or by the window — commanding a premium.
The FIA’s pushback was built on the premise that there is no such thing as a free lunch in aviation. In their correspondence with the ministry, they warned that any loss in seat-selection revenue would simply be recovered by hiking base fares, ultimately hurting the very passengers the government sought to protect. They also leaned on legal precedent, citing a 2017 Delhi High Court ruling which affirmed that preferential seating is a valid "unbundled" service. The carriers argued that as long as these fees are optional and clearly disclosed, the regulator has no business capping them— a sentiment they claim aligns with the government’s own 2024 policies designed to keep entry-level airfares affordable.
Also read: Airlines to offer 60 pc seats in flights from April 20
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