Free Seat Rule Backfires? Airlines Warn Fare Hike

A new rule mandating 60 percent free seat allocation on flights has triggered strong reactions from airlines. The directive has been issued by the Directorate General of Civil Aviation to make more seats available without extra charges.

The move aims to cap seat selection fees and improve passenger convenience. However, several airlines believe the decision could lead to unintended consequences for travellers.

The Federation of Indian Airlines has raised concerns over the financial impact. It represents major carriers like IndiGo, Air India, and SpiceJet.

In a letter to the Civil Aviation Ministry, the body said seat selection fees are an important source of revenue. Any loss from this could be adjusted by increasing ticket prices.

Airlines have also described the directive as regulatory overreach. They argue that pricing and seat allocation should remain commercial decisions.

Another key concern is the lack of prior consultation. Industry players claim the rule was introduced without proper discussion with airlines.

According to the FIA, the policy could reduce affordability in the long run. It may also limit service options and impact budget travellers the most.

While the intention is to benefit passengers, the outcome may be different. If airlines raise fares, the rule could end up increasing travel costs.

This situation raises a larger question about how far regulation should go. It highlights the delicate balance between passenger benefits and airline sustainability.