Air India, IndiGo and SpiceJet have flagged strong concerns over the directive mandating free seat selection for at least 60 percent of seats, cautioning that the move could inflate base fares.
The Federation of Indian Airlines (FIA), which represents these carriers, has urged the Ministry of Civil Aviation to roll back the decision.
In a letter to Civil Aviation Secretary Samir Kumar Sinha, the industry body said the directive could have “unintended consequences” for the sector.
According to the FIA, the financial hit from losing seat-selection fees — a key ancillary revenue stream — would be “significant”. Airlines may have little choice but to offset this by raising ticket prices.
“As a result, all passengers, including those who may not wish to preselect seats, will end up paying higher fares,” the body said.
Carriers argue that such add-on revenues are critical, especially at a time when operating costs — including fuel, maintenance and airport charges — remain elevated.
The FIA also warned that curbs on ancillary pricing could weaken market-driven fare mechanisms and reduce operational flexibility.
Higher base fares may hurt price-sensitive travellers
Airlines may lose pricing flexibility in a competitive market
Rising aviation turbine fuel prices are already straining margins
The industry body added that geopolitical tensions in West Asia and related operational disruptions are further complicating cost structures.
Airlines have also criticised the absence of prior consultation, warning that such regulatory steps could open the door to deeper intervention in pricing.
“If applied, this measure will set a precedent for extensive intervention in ancillary pricing, creating uncertainty for airlines regarding future regulatory constraints,” the FIA said.
The directive, issued by the Directorate General of Civil Aviation under the Ministry of Civil Aviation, requires airlines to offer at least 60 percent of seats free for selection.
The move is part of a broader passenger-centric push aimed at:
improving transparency in pricing
reducing high seat-selection charges
ensuring families on the same PNR are seated together
Seat selection fees currently range from about ₹200 to ₹2,100 depending on seat type.
While the government sees the measure as a step towards fairer travel, airlines argue it may ultimately make flying more expensive — even for those who never pay for seat selection.