New Delhi, March 21: Air India, IndiGo and SpiceJet have strongly opposed the government’s decision to allow free seat selection on up to 60 percent of airline seats, saying the move could hurt their revenue streams and disrupt existing pricing models.
The Federation of Indian Airlines (FIA), representing major carriers, has urged the Ministry of Civil Aviation to withdraw the decision, arguing that seat selection charges form a key part of ancillary income for airlines.
The industry body stated that removing or limiting such charges could significantly affect the financial stability of airlines, particularly low-cost carriers that depend heavily on add-on services to maintain competitive base fares.
Airlines have also highlighted that the policy could force a revision of existing fare structures, potentially leading to higher ticket prices for passengers in the long run.According to FIA, any regulatory change affecting revenue components should be introduced only after comprehensive consultation with all stakeholders in the aviation sector.
Industry representatives further cautioned that sudden policy shifts may impact operational planning and long-term business strategies of carriers.The airlines have collectively requested the Civil Aviation Ministry to reconsider the directive and engage in wider discussions before implementing such measures.
Officials familiar with the matter said that ancillary revenue has become increasingly important for airlines in India’s competitive aviation market.The Ministry is yet to issue a formal response to the airlines’ representation on the matter.
Aviation experts believe the issue could open broader debates on how far regulators should intervene in airline pricing and service models.Discussions between the government and airline representatives are expected to continue in the coming days.
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