Airlines warn of fare hikes, urge withdrawal of free seat selection mandate

Airlines warn of fare hikes, urge withdrawal of free seat selection mandate India's three major airlines have pushed back against a new government directive requiring carriers to offer at least 60 percent of seats on domestic flights free of selection charges, warning that the policy will force them to raise ticket prices across the board. Airlines Call for Withdrawal The Federation of Indian Airlines (FIA) , which represents Air India , IndiGo , and SpiceJet , wrote to Civil Aviation Secretary Samir Kumar Sinha on Thursday urging the ministry to withdraw the mandate. "The financial impact of the directive on airlines will be significant, compelling airlines to recover the lost revenues through increases in fares," the FIA said in its letter, according to India Today. "As a result, all passengers, including those who may not wish to preselect seats, will end up paying higher fares." The industry body argued that airlines operate on thin margins and depend on ancillary revenues, including seat selection fees typically ranging from Rs 200 to Rs 2,100, to offset rising costs from fuel, maintenance, and airport charges. The FIA also raised concerns that the ministry did not consult stakeholders before issuing the directive, warning that it sets "a precedent for excessive intervention in ancillary pricing". What the Government Ordered The Ministry of Civil Aviation announced the directive on Wednesday, instructing the Directorate General of Civil Aviation (DGCA) to enforce the new rule. Until now, only about 20 percent of seats were available free of charge, with airlines charging for the majority of preferred options. Civil Aviation Minister K Rammohan Naidu framed the move as part of broader passenger welfare reforms, saying it would ensure "60 per cent seats free of charge, assured seating together for families, and clear, transparent norms". The order also requires airlines to seat passengers booked under the same PNR in adjacent seats and to display passenger rights prominently in regional languages. The directive followed concerns that airlines and travel agents were using "dark pattern" techniques on websites to nudge passengers into paying for seat selection while keeping free options minimal, according to Business Standard. Industry Tensions Mount The clash comes at a difficult moment for India's aviation sector. Airlines are already grappling with rising jet fuel costs linked to the West Asia conflict, which has also disrupted flight operations in the region. The FIA contended that the free seat mandate would be "counter-productive," shifting targeted user-based charges into blanket fare increases that disproportionately impact price-sensitive travelers, the very passengers the policy aims to protect.

Airlines warn of fare hikes, urge withdrawal of free seat selection mandate

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Airlines warn of fare hikes, urge withdrawal of free seat selection mandate

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