The Centre has decided to pause a recent proposal that would have significantly changed how airlines charge passengers for seat selection, offering temporary relief to carriers while raising fresh questions for flyers.
In a communication to the Directorate General of Civil Aviation (DGCA), the civil aviation ministry said the earlier direction requiring airlines to offer at least 60 per cent of seats without additional charges will now be kept in abeyance until further orders, reported PTI.
The directive, announced on March 18, proposed that airlines allocate a minimum of 60 per cent of seats on every flight for free selection, aimed at ensuring fair access for passengers amid rising complaints over ancillary charges.
However, following industry feedback, the government has opted to revisit the proposal before moving ahead with implementation.
Why The Government Pressed Pause
The decision comes after representations from the Federation of Indian Airlines and Akasa Air, which flagged operational and commercial challenges linked to the proposed rule.
According to the ministry, concerns were raised about the potential impact on airline pricing structures and its alignment with India’s deregulated tariff regime.
Airlines argued that seat selection fees form part of a broader pricing strategy, helping them manage revenues while offering lower base fares. Any mandatory cap on such charges, they suggested, could disrupt this balance.
In light of these concerns, the government said the matter requires a more comprehensive examination before any final decision is taken.
What Passengers Pay Today
Currently, airlines allow only around 20 per cent of seats to be selected without any additional cost. For the remaining seats, passengers are typically charged a fee.
According to a travel industry executive cited by PTI, these charges generally range between Rs 200 and Rs 2,100 depending on factors such as seat location, proximity to the front of the aircraft and extra legroom.
This pricing model has become a key part of airline revenue streams, particularly as carriers seek to keep headline ticket prices competitive in a price-sensitive market.
Rising Complaints Over Ancillary Charges
The March 18 directive was introduced against the backdrop of increasing passenger complaints over add-on charges levied by airlines.
Travellers have frequently raised concerns about having to pay extra for services such as seat selection, baggage allowances and priority boarding, which were once considered part of the base fare.
The proposed 60 per cent rule was seen as an attempt to address these concerns by ensuring that a majority of seats could be selected without additional costs.
Balancing Consumer Interests And Airlines’ Pockets
The current pause highlights the delicate balance regulators are attempting to maintain between consumer protection and the financial sustainability of airlines.
India’s aviation sector operates under a deregulated pricing framework, allowing airlines to set fares based on market conditions. While this has encouraged competition and lower base fares, it has also led to the rise of ancillary charges as a key revenue source.
Industry stakeholders argue that restricting such charges could force airlines to increase ticket prices, potentially offsetting any benefit to passengers.
At the same time, consumer advocates have called for greater transparency and fairness in pricing, especially as add-on costs continue to rise. For now, the status quo will continue, with airlines free to charge for seat selection beyond the existing limited free quota.
The civil aviation ministry has indicated that the issue will undergo further review before any revised policy is introduced.
