Airlines flag concerns over 60% ‘no seat selection fee’ rule, warn of higher fares for all in letter to Ministry of Civil Aviation

By Word News 24x7 On Mar 20, 2026

The Federation of Indian Airlines has urged the Ministry of Civil Aviation to roll back its directive requiring airlines to make at least 60% of seats available for free selection, warning of “unintended and adverse consequences” for the sector.

In a letter dated March 19, written on behalf of Air India, IndiGo and SpiceJet, the body argued that seat-selection fees are a “legitimate component” of airline revenue. It noted that carriers operate on thin margins and depend on such ancillary income to offset rising costs like fuel, maintenance and airport charges.

The federation said a uniform restriction on these revenues would undermine pricing flexibility and interfere with market-driven mechanisms. It warned that airlines may be forced to compensate for lost income by increasing ticket fares, ultimately impacting all passengers—even those who do not opt for seat selection.

Currently, most seats attract a fee during web check-in, although passengers can still choose a random seat at no extra cost, except for premium options such as extra legroom.

The FIA also flagged concerns of regulatory overreach, saying the ministry’s direction to the Directorate General of Civil Aviation intrudes into commercial decisions traditionally left to airlines.

Citing a February 12 reply in the Lok Sabha, the federation pointed out that the government has maintained that airfares are not regulated and that airlines are free to determine pricing based on market conditions. It argued that unbundled pricing—where passengers pay only for optional services like seat selection or baggage—helps keep base fares lower.

The body further claimed there was no formal consultation before issuing the directive and cautioned that such intervention could set a precedent for deeper regulatory control over ancillary pricing, creating uncertainty for the industry.

It has called for the mandate to be withdrawn and for existing practices to continue.