A major showdown is brewing between India’s leading carriers and the Ministry of Civil Aviation. On March 19–20, 2026, the Federation of Indian Airlines (FIA)—representing Air India, IndiGo, and SpiceJet—sent a strongly worded letter to the Civil Aviation Secretary, formally opposing a new directive that requires airlines to offer at least 60% of seats for free selection on every flight.
The Conflict: “Fair Access” vs. “Commercial Survival”
The government’s directive, issued on March 18, aims to stop the practice of charging for almost every seat during web check-in. However, airlines argue that this “unbundled” pricing is exactly what keeps base fares affordable.
- The Airline Argument: Carriers operate on “wafer-thin margins.” Ancillary revenues (like seat selection fees ranging from ₹200 to ₹2,100) are essential to offset rising costs like jet fuel, which has spiked due to the West Asia conflict.
- The “Blanket Hike” Warning: The FIA warns that if they cannot charge specific passengers for preferred seats, they will be forced to raise base airfares for everyone to recover the lost revenue.
- Price-Sensitive Impact: This would disproportionately hurt budget travelers who currently opt for “no-frills” tickets and random seat allocation to save money.
4 Key Points of Contention
| Airline Objection | Details (March 2026 Filing) |
| Regulatory Overreach | FIA cited a 2017 Delhi HC ruling stating the DGCA cannot cap charges for “unbundled” services. |
| Market Interference | Airlines argue that “market-driven pricing” is a global standard and the govt should stay out of commercial decisions. |
| Lack of Consultation | The FIA claims the directive was issued “without any prior engagement” or stakeholder discussion. |
| Operational Pressure | Fuel prices and disruptions in the Strait of Hormuz have already pushed operational costs to a multi-year high. |
New “Passenger-Friendly” Rules (Starting March 26, 2026)
While the seat-selection battle continues, several other DGCA rules are set to take effect this Thursday:
- 48-Hour “Look-In” Window: Passengers can cancel or amend bookings free of charge within 48 hours (if the flight is 7+ days away for domestic, 15+ for international).
- Capped Cancellation Fees: Charges cannot exceed the Base Fare + Fuel Surcharge. All other taxes and fees must be refunded.
- 24-Hour Name Correction: Spelling errors can be corrected for free within 24 hours of booking.
- Adjacent Seating: Families or groups on the same PNR should be seated together, preferably in adjacent seats, without extra “premium” charges for the privilege.
The “Same PNR” Loophole
Airlines are particularly frustrated with the mandate to seat families together. They argue that if a flight is nearly full, forcing adjacent seating for a late-booking family could require moving other passengers who paid for their specific seats, creating a “logistical and customer service nightmare.”
