IndiGo, Air India, SpiceJet oppose govt's free seat directive, warn of fare hikes
India Today
IndiGo, Air India and SpiceJet have opposed the government's move to make 60% of seats free for selection, warning it will hurt revenues. Airlines say the loss will likely be offset by higher ticket fares, impacting overall affordability for passengers.
IndiGo, Air India and SpiceJet have raised strong objections to the government's decision asking airlines not to levy any charges for the selection of at least 60 per cent seats on flights, saying the move will force them to hike airfares to recover lost revenues.
The Federation of Indian Airlines (FIA), which represents the three airlines, has also urged the Civil Aviation Ministry to take steps to withdraw the decision.
On Wednesday, the ministry announced that directions have been issued to the DGCA to direct airlines to allocate a minimum of 60 per cent of seats for selection on any flight free of charge to ensure fair access for passengers.
In a letter written to Civil Aviation Secretary Samir Kumar Sinha on Thursday, FIA said the direction would have unintended and adverse consequences for the aviation sector.
"The financial impact of the directive on airlines will be significant, compelling airlines to recover the lost revenues through increases in fares. As a result, all passengers, including those who may not wish to preselect seats, will end up paying higher fares," it said.
FIA noted that seat selection fees form a legitimate component of airline revenue, particularly in the high-cost environment where costs rise year-on-year under the regulator AERA-governed regime that accords full cost recovery plus an assured margin to airports.
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