The Centre has put on hold its directive requiring airlines to offer 60% of seats on every flight free of charge for selection, following strong objections from the aviation industry.
In an order issued on Thursday, the Ministry of Civil Aviation said the proposal has been kept in abeyance pending a detailed review, citing concerns over its impact on airline fare structures.
The decision comes just weeks after the ministry, on March 17, had instructed the Directorate General of Civil Aviation (DGCA) to implement the rule. The move was aimed at ensuring fair access for passengers by mandating airlines to make a majority of seats available without additional charges.
However, the proposal faced resistance from industry stakeholders. The Federation of Indian Airlines, along with carriers such as Akasa Air, raised concerns about the operational and commercial implications of the rule.
Airlines argued that such a mandate could disrupt pricing models and conflict with India’s deregulated aviation tariff regime. They also warned that it could lead to inconsistencies in fare structures and limit flexibility in revenue management.
“In view of the above, and pending a comprehensive examination of the issue, it has been decided that the provision relating to offering at least 60% of seats free of charge shall be kept in abeyance till further orders,” the ministry said.
While the free seat allocation rule has been paused, the DGCA has been asked to continue enforcing other passenger-friendly measures. These include ensuring transparency in seat allocation, enabling co-seating for passengers booked under the same PNR, and facilitating the carriage of musical instruments and sports equipment.
The development highlights the ongoing balancing act between consumer rights and the commercial realities of the aviation sector, with further clarity expected after the government completes its review.