The Centre has put on hold its directive that required airlines to offer at least 60% of seats for free selection, following strong objections from the aviation industry. The rule, which was expected to come into effect later this month, aimed to make air travel more affordable and transparent for passengers.
The policy was introduced to reduce additional charges levied on travellers for choosing seats. Under the proposed rule, a majority of seats on every flight would have been available at no extra cost, limiting airlines’ ability to charge for seat selection except for premium options.
However, airlines pushed back against the move, arguing that seat selection fees are an important part of their ancillary revenue. They warned that restricting this income stream could disrupt their pricing strategies and financial stability. According to industry players, such a mandate could eventually lead to higher base fares, shifting the burden back onto passengers in a different way.
Airlines also highlighted that India follows a deregulated aviation market, where ticket pricing and related services are largely determined by market forces. They expressed concerns that imposing such rules could interfere with this system and create operational challenges.
In response, the government decided to suspend the order for now and review the proposal in detail. Officials indicated that the decision was taken to balance passenger interests with the financial health of airlines, especially at a time when the sector is dealing with rising fuel costs and other expenses.
While the pause brings relief to airlines, it means passengers will continue to pay for preferred seat selection under existing practices. The anticipated benefit of wider access to free seats will have to wait until a final decision is made.
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