Leading airlines including IndiGo, Air India and SpiceJet have raised strong objections to the government’s directive mandating free seat selection for at least 60% of seats, warning that the move could lead to higher airfares.
The airlines, represented by the Federation of Indian Airlines (FIA), have urged the Civil Aviation Ministry to withdraw the decision.
Govt Directive Aims to Improve Passenger Access
The Civil Aviation Ministry recently directed the Directorate General of Civil Aviation (DGCA) to ensure that airlines offer free seat selection for a majority of seats to improve fairness and accessibility for passengers.
The move comes amid concerns over rising ancillary charges, including seat selection fees ranging from ₹200 to ₹2,100.
Airlines Warn of Revenue Loss and Fare Hike
In a letter to Civil Aviation Secretary Samir Kumar Sinha, the FIA said the directive would have “unintended and adverse consequences.”
“The financial impact will be significant, forcing airlines to recover lost revenue through higher fares. As a result, all passengers will end up paying more,” the body said.
Airlines argued that seat selection fees are a key revenue source, especially in a high-cost environment.
Rising Costs and Thin Margins Add Pressure
The FIA highlighted that airlines operate on thin margins and depend on ancillary revenues to offset rising costs such as:
- Fuel prices
- Maintenance expenses
- Airport charges (regulated under AERA framework)
It warned that restricting such revenue streams would undermine commercial flexibility and disrupt market-driven pricing.
Impact on Passengers May Be Counter-Productive
While the policy aims to benefit passengers, airlines claim it could have the opposite effect:
- Higher base fares for all passengers
- Reduced affordability, especially for price-sensitive travellers
- Loss of choice for those not opting for seat selection
The FIA said the move could shift targeted charges into blanket fare increases, affecting the entire passenger base.
Concerns Over Lack of Consultation
The airline body also flagged the absence of stakeholder consultations before issuing the directive, warning that such regulatory interventions could create uncertainty for the sector.
“This may set a precedent for excessive intervention in ancillary pricing,” the FIA cautioned.
Operational Challenges Amid Global Tensions
Airlines also pointed to rising jet fuel prices and operational challenges due to the ongoing West Asia conflict, which has impacted flight routes and costs.
Industry Seeks Rollback of Directive
The FIA has urged the government to reconsider and withdraw the mandate, stating that the measure could adversely affect both the aviation industry and passengers in the long run.
