Less than three weeks after ordering airlines to offer at least 60% seat selection free of charge on every flight to improve passenger convenience, the civil aviation ministry has kept the order quiet following airlines’ concerns over its operational and business impact.
The directive will remain suspended until further orders while the government conducts a detailed inquiry into the matter, the Center said in a letter dated April 2 to the Directorate General of Civil Aviation (DGCA). Mint reviewed a copy of the letter.
The ministry had earlier on March 17 written to airlines to strengthen passenger facilitation measures and ensure that at least 60% of seats in any years are offered free of charge.
The move drew strong objections from carriers who argued that such a mandate could disrupt existing tariff structures under India’s deregulated aviation pricing regime.
“The matter has been reviewed in view of the representations received from the Federation of Indian Airlines and Akasa Air, highlighting the operational and commercial implications of the above provision, including its potential impact on the fare structure and compliance with the prevailing deregulated fare regime,” the letter said.
“In view of the above and pending a comprehensive investigation of the issue, it has been decided that the provision regarding offering a minimum of 60% free seats will be suspended till further orders,” the ministry said in the letter.
According to the Federation of Indian Airlines (FIA) website, they are members IndiGo, Air India and SpiceJet.
An email sent to MoCA, DGCA, Akasa Air and Federation of Indian Airlines did not elicit a response till press time
However, the Ministry requested The DGCA will continue to push for additional measures to facilitate passengers mentioned in the earlier directive. These include greater transparency in seat allocation, ensuring passengers sit together on the same Passenger Name Record (PNR) and clearer disclosure of applicable charges.
The regulator has also been asked to ensure a smoother policy on the carriage of musical instruments, sports equipment and pets on flights.
The the airline industry is dealing with the double whammy of rising fuel costs and an earlier hit to ancillary revenue following the introduction of free seat selection standards, Mint reported on April 1. This temporary lifting of these curbs is likely to offer some relief and help airlines partially offset the pressure from escalating fuel costs.
India follows a deregulated fare regime that allows airlines to set fares based on demand, operating costs and competitive dynamics. But the center intervened in December by imposing fare caps after IndiGo faced a major operational meltdown that triggered nationwide flight cancellations and more than doubled fares. The government lifted those restrictions last month.
