The Directorate General of Civil Aviation (DGCA) recently announced that, from 20 April, airlines must offer at least 60% of seats on a flight without levying any additional fee and maintain a transparent seat allocation policy.
According to a PTI report, the civil aviation ministry, on 18 March, announced that it had issued directions to the aviation watchdog, asking airlines to allocate at least 60% of seats for selection on any flight free of charge, a move to ensure fair access for passengers.
Revised rules for airlines
Following directions from the ministry, DGCA, on 20 March, issued the amended Air Transport Circular, which will come into effect on 20 April. According to the revised circular, "Airlines should maintain transparent seat allocation policies and clearly communicate the availability of free seats and applicable conditions on their booking interfaces."
Additionally, DGCA said airlines should, as far as possible, allot seats in proximity to one another to passengers travelling on the same Passenger Name Record (PNR).
The circular also said that airlines must clearly and transparently display all applicable fees for optional services related to sports equipment or musical instruments, along with any terms outlining liability in case of damage, on their websites and booking platforms.
At present, passengers can only book 20% of the seats free of charge. PTI, citing a DGCA official, said airlines are gearing up to implement this new directive.
DGCA has said the circular will take effect 30 days from its issuance date.
Airlines' charge for selecting seats
Currently, airlines charge between ₹200 and ₹2,100 for seat selection, depending on factors such as front rows and extra legroom.
The development comes amid a surge in concerns that airlines charge high fees for various services, including seat selection.
Air India, IndiGo oppose DGCA's decision
Last week, IndiGo, Air India, and SpiceJet strongly opposed the decision, arguing that requiring airlines to offer at least 60% seats without selection fees would likely push them to raise ticket prices to offset revenue losses.
In a letter, the Federation of Indian Airlines (FIA), which represents these carriers, urged the civil aviation ministry to reconsider and withdraw the directive. Addressing the Civil Aviation Secretary Samir Kumar Sinha, the FIA, in a letter on 19 March, said the DGCA's decision would have "unintended and adverse consequences" for the aviation sector.
It added, “The financial impact of the directive on airlines will be significant, compelling airlines to recover the lost revenues through increases in fares. As a result, all passengers, including those who may not wish to preselect seats, will end up paying higher fares.”
The association said the seat selection fees were a legitimate component of airline revenue. It said that airlines face rising costs each year under the AERA-governed regime, which allows airports full cost recovery plus an assured margin.
The group added that the move might appear beneficial to passengers at first, but higher fares would reduce choice and affordability, making the overall impact negative.
Airports across India currently handle more than 500,000 passengers daily.
