Centre puts 60% free flight seat allocation mandate on hold after industry concerns

The civil aviation ministry on Thursday (March 2) "put in abeyance" its earlier direction to airlines to offer at least 60 per cent of seats in a flight without levying any additional charge from April 20, according to sources.

The ministry said the provision would be kept “in abeyance till further orders” pending a “comprehensive examination of the issue,” according to a letter dated April 2 addressed to the Director General of Civil Aviation.

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On March 18, the civil aviation ministry announced that directions have been issued to the DGCA to direct airlines to allocate a minimum of 60 per cent of seats for selection on any flight free of any additional charges to ensure fair access for passengers.

Airlines get temporary relief

The Federation of Indian Airlines (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.

"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.”

"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," Civil Aviation Ministry said in a communication to the DGCA.

At present, 20 per cent of the seats can be booked free of charge, while the rest are paid.

Row over seat selection fees

Indian carriers currently charge ancillary fees for seat selection during web check-in, with only between 5% and 15% of seats on a typical flight available without an additional charge. Seats toward the front of the aircraft and window seats are usually priced higher.

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FIA also cited a 2017 Delhi High Court ruling that preferential seating is a valid unbundled service and DGCA has no authority to fix or cap its price as long as the service is optional, transparently disclosed and non-discriminatory. It further argued the directive contradicted the government’s own 2024 Air Transport Circular, which had endorsed unbundling as a mechanism to keep base fares affordable.

The move to allocate a minimum of 60 per cent of seats for selection on any flight came against the backdrop of rising complaints that airlines were levying high charges for various services, including seat selection.

(With agency inputs)