Major Indian airlines have raised concerns over the government’s directive mandating free seat selection for at least 60% of passengers, warning that the move could lead to an increase in airfares.
Through the Federation of Indian Airlines (FIA), leading carriers like IndiGo, Air India, and SpiceJet have written to the Ministry of Civil Aviation, requesting a rollback of the order.
The airlines argue that eliminating seat selection charges—an important source of ancillary revenue—would significantly impact their earnings. Currently, passengers often pay between ₹150 and ₹2,000 to choose preferred seats such as window, aisle, front-row, or extra legroom options.
According to the FIA, airlines operate on thin profit margins and depend on such additional revenues to offset rising operational costs like fuel, maintenance, and airport charges. The body warned that if these charges are removed, airlines may be forced to compensate by increasing overall ticket prices, affecting all passengers, including those who do not opt for seat selection.
The industry group also criticized the lack of stakeholder consultation before implementing the directive, calling it an “excessive intervention” in market-driven pricing. It cautioned that such measures could set a precedent for further regulatory constraints, creating uncertainty for the aviation sector.
The government’s move, aimed at enhancing passenger rights and affordability, has thus sparked a debate between consumer benefits and airline sustainability.