On Thursday, the Union Ministry of Civil Aviation suspended a three-week-old directive that would have required airlines to offer at least 60% of their seats without a selection fee. The rule, originally announced on March 17 as a “passenger rights push,” aimed to curb high ancillary charges and ensure families on the same booking could sit together.
However, the Ministry has now put the order “in abeyance” following intense pushback from the Federation of Indian Airlines (FIA) and Akasa Air. While passengers sought relief from fees ranging between ₹200 and ₹2,000, airlines argued that the mandate interfered with India’s deregulated fare regime and would force a hike in base ticket prices to recover lost revenue.
A Balancing Act or a Policy U-Turn?
The Ministry’s decision to halt the 60% free-seat quota comes after airlines flagged significant “operational and commercial implications.” In a letter to the Directorate General of Civil Aviation (DGCA), officials stated the rule would be suspended pending a “comprehensive examination.”
Representing major carriers like IndiGo, Air India, and SpiceJet, the FIA pointed to a 2017 Delhi High Court ruling which affirmed that preferential seating is a valid “unbundled” service that the government cannot price-cap.
Despite the freeze on free seats, the Ministry clarified that other pro-consumer measures remain active. “The DGCA will continue to enforce rules on co-seating for passengers on the same PNR and the transparent disclosure of charges for pets and sports equipment,” a government official noted.
The Rise of Unbundled Fares
This policy tug-of-war is rooted in the “unbundling” model adopted by Indian carriers over the last decade, where base fares are kept low by charging extra for services like meals, baggage, and seat selection. Currently, most airlines only offer 5% to 15% of their cabin for free, usually middle seats in the rear.
The March 17 directive was a response to a surge in passenger complaints regarding “hidden fees” that often make the final booking price much higher than the advertised fare. However, industry experts like Vishok Mansingh of Vman Aviation warned that restricting these revenue streams would “push up pure vanilla (base) fares,” potentially hurting the very price-sensitive travellers the government intended to protect.
The Logical Indian’s Perspective
At The Logical Indian, we believe that true progress in the aviation sector should not come at the cost of transparency or the dignity of the passenger. While we understand the commercial complexities of a deregulated market, the practice of charging families extra just to sit together or “locking” the majority of a cabin behind a paywall feels less like a service and more like a tax on togetherness.
A fair system is one where empathy guides policy balancing the financial health of airlines with the basic right of a consumer to a predictable, affordable journey. We urge the Ministry and stakeholders to engage in a dialogue that prioritises the common man’s convenience without destabilising the industry.
