A fresh directive mandating 60 per cent free seat allocation on flights has triggered a sharp pushback from airlines, who warn the move could lead to higher airfares for passengers.
The Federation of Indian Airlines, which represents IndiGo, Air India and SpiceJet, has written to Civil Aviation Secretary Sameer Sinha, raising concerns over the financial impact of the order.
Airlines say the directive will cut into a key revenue stream, forcing them to recover losses from passengers.
“The financial impact of this directive on airlines will be significant, compelling airlines to recover the lost revenues through increases in fares,” the FIA said in its letter.
It added that the move, though intended to benefit passengers, could end up being “counter productive”.
The industry body has also questioned the role of regulators in commercial decisions.
FIA flagged what it called “regulatory overreach into commercial aspects of airline operations”, arguing that pricing and seat allocation are core business decisions.
It also raised concerns over the authority of the Directorate General of Civil Aviation to regulate airfare components and unbundled services.
“DGCA does not have the authority to fix or cap charges for unbundled services,” the FIA said, referring to previous court orders.
Airlines said that while free seat selection may appear beneficial at first, the broader impact could be negative.
“Higher fares will reduce consumer choice and affordability, particularly for frequent flyers, families, and budget travellers,” the FIA said.
It added that standardising seat allocation across airlines would limit service differentiation, reducing the ability of passengers to choose carriers based on preferences.
The aviation body also disputed claims that airlines were consulted before the directive was issued.
“The mandate was not clearly communicated to member airlines prior to the press release dated March 18, 2026,” it said, adding that no prior stakeholder consultation had taken place.
Airlines have urged the Ministry of Civil Aviation to withdraw the directive under the current rules.
FIA cautioned that implementing the rule could set a precedent for deeper intervention in airline pricing.
“If applied, this measure will create uncertainty for airlines regarding future regulatory constraints,” it said, urging the government to reconsider the move “in the overall interest of the sector”.
