Airlines rebel: IndiGo, Air India warn of price hike over govt's 'free seat' directive
IndiGo and Air India protest the government's order to make 60% of flight seats free, warning it will lead to higher ticket prices. Airlines argue the move will hurt budget travelers and they're challenging the directive, claiming it exceeds regulatory authority
New Delhi (The Uttam Hindu): If you also travel by air and pay extra money to book your favorite window or front seat in the flight, then this news is for you only. Recently, the Ministry of Civil Aviation had issued a big order to the airlines to provide 60 percent seats of every flight free of cost to the passengers. But instead of providing relief to the passengers due to this decision of the government, the airlines have got very angry. The major aviation companies of the country have opened a front against this order of the government and have clearly warned that the common passengers will have to bear the direct brunt of this decision in the form of expensive tickets.
These companies, including Indigo and SpiceJet, opened a front
This new government rule, announced on March 18, 2026, mandated airlines to curb seat selection charges. The Federation of Indian Airlines (FIA) has written a scathing letter to Ministry of Civil Aviation (MoCA) Secretary Samir Sinha in strong protest of this decision. The federation includes the country's three largest airlines: IndiGo, Air India, and SpiceJet. These companies clearly state that this government decision will be completely counterproductive and will directly impact the pockets of budget travelers.
If seats become free, ticket prices will increase directly
Airlines have made it clear in their arguments to the government that if they don't charge passengers for choosing their preferred seat, they will have to compensate for that loss. They say this loss will be covered by simply increasing the base price of the ticket. For example, if a passenger currently buys a ticket for ₹4,000 and pays ₹300 for a preferred seat, that ticket will now cost ₹4,500. In this case, even if the seat is free, the passenger's total expenses will increase significantly. The companies claim that this will cause significant losses, especially for those who prefer to travel cheaply with their families.
The government has no right to fix prices
Expressing its strong displeasure, the federation has also legally challenged this order of the government. The airlines say that the DGCA, the government body that regulates air traffic, does not have the legal authority to fix the prices of or ban additional services like seat charges. Citing past court proceedings and decisions, the airlines have reminded the government that this matter is completely outside its jurisdiction. The airlines have also expressed concern that if all airlines are bound by the same rules, the identity of different and better facilities provided to passengers (such as more legroom or better food) will be lost.
The decision was imposed without asking, and it should be withdrawn immediately
Beyond these arguments, the airlines' biggest complaint is that they weren't consulted before making such a significant decision. In its letter, the federation strongly stated that they had no idea about the new rule before the press release appeared in the media on March 18th. The government neither held any meetings with the companies nor consulted them. Airlines learned of this new rule directly through newspapers. They have demanded the government immediately withdraw the order and warned that if the government continues to unnecessarily interfere in service pricing, it will become impossible for them to continue their business in the future.