Will fares rise? Indian airlines push back on govt’s 60% free seat selection rule
Air India, IndiGo, SpiceJet warn fares may rise over 60% free seat mandate
India’s major airlines have pushed back against the government’s new rule requiring at least 60% of seats on flights to be available for free selection, warning it could lead to a sharp rise in airfares, according to a PTI report.
The Federation of Indian Airlines (FIA), representing IndiGo, Air India, and SpiceJet, has strongly opposed the directive, citing concerns that it could push ticket prices higher.
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Free seat selection could raise ticket prices
“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 a letter to the Civil Aviation Ministry.
The industry body warned that while the move aims to benefit passengers, it could be “counterproductive,” limiting affordability and choice for frequent flyers, families, and budget travellers.
Regulatory overreach questioned
FIA also raised concerns about the authority of the Directorate General of Civil Aviation (DGCA) to regulate airfare components and unbundled services. “DGCA does not have the authority to fix or cap charges for unbundled services,” the body said, citing prior court orders.
It flagged what it described as “regulatory overreach into commercial aspects of airline operations,” arguing that pricing and seat allocation are core business decisions.
No consultation before announcement
The aviation body noted that member airlines were not consulted before the directive was announced on March 18, 2026. “The mandate was not clearly communicated to member airlines prior to the press release… no prior stakeholder consultation had taken place,” FIA said.
Operational challenges compound impact
Airlines have also highlighted operational pressures, including rising jet fuel costs amid the West Asia conflict, which has affected flights to and from the region. The FIA warned that enforcing the 60% free seat rule could set a precedent for further regulatory intervention in airline pricing, creating uncertainty for the sector.
Call for reconsideration
The Federation urged the Ministry of Civil Aviation to withdraw the directive, saying, “If applied, this measure will set a precedent for excessive intervention in ancillary pricing with heavy loss of revenues for the airlines, apart from creating uncertainty for airlines regarding future regulatory constraints.”
60% free seat rule: What this means for travellers
The rule aims to make air travel more affordable and predictable. The move builds on past government interventions, when seat allocation and fare limits helped prevent excessive charges in emergencies.
Passenger-friendly benefits include:
Affordable and stable fares: Passengers save on seat selection charges, previously ranging from INR 300 to over INR 900. Prices on high-demand routes like Delhi–Mumbai or Delhi–Bengaluru are expected to stabilise.
Better accessibility: Travellers can book with confidence, especially during festivals, long weekends, or peak periods. Early bookings help secure lower fares.
Families and groups together: Passengers on the same PNR will now be seated together.
Clear policies for baggage, instruments, and pets: Airlines must provide transparent rules for sports/musical equipment and pet travel.
Stronger passenger rights enforcement: Rules cover cancellations, delays, and denied boarding.
Improved information: Rights must be clearly displayed on websites, apps, and at airports, including in regional languages.
