IndiGo, Air India, and SpiceJet have opposed the government’s directive that prevents airlines from charging for seat selection on at least 60 per cent of seats, warning that it could lead to higher airfares.
The Federation of Indian Airlines (FIA), which represents these carriers, has urged the civil aviation ministry to reconsider the move. In a letter to Civil Aviation Secretary Samir Kumar Sinha on Thursday, the body stated that the directive may have unintended and negative consequences for the aviation sector.
“The financial impact of the directive on airlines will be significant, compelling airlines to recover the lost revenues through increases in fares,” the letter said.
Airlines Warn of Higher Flight Fares Amid Seat Selection
The FIA stated that the move would ultimately lead to higher fares for all passengers, including those who do no opt for seat selection. It emphasised that seat selection fees are a valid revenue stream for airlines, particularly given the industry’s high operating costs.
The body also highlighted that expenses continue to rise each year under the Airports Economic Regulatory Authority (AERA) framework, which permits airports full cost recovery along with a fixed margin.
FIA Flags Flight Fare Hike Risk, Rule May Hurt Budget Travellers
The FIA said, “Airlines operate on thin margins and rely on ancillary revenues to offset rising operational costs, including fuel, maintenance, airport charges, etc. Imposing a uniform restriction on ancillary revenue undermines commercial flexibility and interferes with market-driven pricing mechanisms.”
While free seat selection may appear beneficial at first glance, the body warned that the larger impact could be negative, with higher ticket prices reducing affordability and limiting consumer choice.
It added that turning optional, user-paid services into a standard fare component could disproportionately affect price-sensitive travellers.
On Wednesday, the ministry said it had directed the DGCA to ensure that airlines offer at least 60 per cent of seats on every flight free of charge for selection, with the aim of providing fair access to passengers.
Manisha Chauhan is a passionate journalist with 3 years of experience in the media industry, covering everything from trending entertainment buzz and celebrity spotlights to thought-provoking book reviews and practical health tips. Known for blending fresh perspectives with reader-friendly writing, she creates content that informs, entertains, and inspires. When she’s not chasing the next viral story, you’ll find her diving into a good book or exploring new wellness trends.
