IndiGo, Air India, SpiceJet Oppose Govt 60% Seat Selection Rule; Warn of Airfare Hike, Aviation Sector Impact- Here’s Travellers Must Know Before Next Flight

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. 

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