Indian Government Suspends Controversial Airline Seat Allocation Directive

Suspension of Seat Allocation Directive

On Thursday, the Indian government announced the suspension of a recent directive that mandated airlines to offer passengers the option to select at least 60% of seats on flights without incurring additional fees. This decision was reported by a major news outlet.

Initially introduced on March 17, the directive has now been put on hold pending a thorough review, as stated in a letter from the Ministry of Civil Aviation to the Directorate General of Civil Aviation.

The original circular required airlines to provide at least 60% of seats without selection charges and aimed to ensure that passengers booking together would be seated in proximity.

This rollback follows concerns raised by the Federation of Indian Airlines, which includes major carriers such as Air India, IndiGo, SpiceJet, and Akasa Air. They argued that restricting seat selection fees could negatively affect their revenue and lead to increased base ticket prices.

Currently, Indian airlines typically charge extra for seat selection during online check-ins, with only a small percentage of seats available without additional costs. Seats located at the front and window positions are often priced higher.

Additionally, on Wednesday, the government capped the increase in aviation turbine fuel prices for domestic airlines to 25%, in response to escalating oil prices and disruptions in routes due to ongoing conflicts in West Asia.