Major Indian airlines, including IndiGo, Air India, and SpiceJet, strongly oppose the government’s mandate requiring 60% of flight seats to be offered free for selection. They warn that this policy could force airfare increases to compensate for lost revenue.
Airlines Demand Policy Reversal
The Federation of Indian Airlines (FIA), representing these carriers, sent a letter to Civil Aviation Secretary Samir Kumar Sinha urging the withdrawal of the directive. The FIA highlights severe financial repercussions for the sector.
“The financial impact of the directive on airlines will be significant, compelling airlines to recover the lost revenues through increases in fares. As a result, all passengers, including those who may not wish to preselect seats, will end up paying higher fares,” the FIA stated.
Airlines face escalating operational costs, such as fuel, maintenance, and airport fees, which already erode profit margins. They depend on ancillary revenues, like fees for preferred seats, to stay viable.
Lack of Consultation Sparks Concerns
The FIA criticizes the Ministry of Civil Aviation for issuing the rule without consulting stakeholders. “If applied, this measure will set a precedent for excessive intervention in ancillary pricing with heavy loss of revenues for the airlines, apart from creating uncertainty for airlines regarding future regulatory constraints,” the federation noted.
The policy bars airlines from charging premium fees for seats with extra legroom or front-row positions, mandating that at least 60% of seats on every flight remain free for passenger selection. While this offers relief to travelers avoiding extra charges for better seats, airlines anticipate substantial income losses from customers seeking added comfort.
