Govt puts mandatory 60% free airline seat rule on hold amid jet fuel price rise

The government has put in abeyance its earlier directive mandating airlines to offer at least 60 per cent of seats on a flight without any additional charge, pending further review, according to official communication.

The Ministry of Civil Aviation (MoCA) had earlier, on March 18, directed the Directorate General of Civil Aviation (DGCA) to ensure that airlines allocate a minimum of 60 per cent of seats for selection free of cost, aimed at ensuring fair access for passengers. The order was scheduled to come into effect from April 20.

However, amid rising aviation turbine fuel (ATF) prices and increasing operational costs for airlines, the ministry has now decided to review the matter following representations from the Federation of Indian Airlines (FIA) and Akasa Air.

“The matter has been reviewed in light of representations received from the Federation of Indian Airlines and Akasa Air, highlighting operational and commercial implications of the above provision, including its potential impact on fare structures and consistency with the prevailing deregulated tariff regime,” the MoCA said in its communication to the DGCA, accessed by India Today.

“In view of the above, and pending a comprehensive examination of the issue, it has been decided that the provision relating to offering at least 60 per cent of seats free of charge shall be kept in abeyance till further orders,” the ministry added.

The FIA, which represents major carriers including IndiGo, Air India, and SpiceJet, along with Akasa Air, had urged the DGCA to withdraw the directive, citing concerns over its operational and commercial impact.

Currently, airlines allow around 20 per cent of seats to be selected free of charge, while passengers are required to pay for the remaining seats. Seat selection charges typically range from Rs 200 to Rs 2,100, depending on factors such as seat location, including front rows and extra legroom.

The earlier move to increase the free seat allocation to 60 per cent had come against the backdrop of rising passenger complaints over high ancillary charges levied by airlines for services such as seat selection.

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