In a sharp policy reversal, the Union ministry of civil aviation (MoCA) has kept in abeyance its directive mandating airlines to offer at least 60% of seats on every flight free of charge, less than a month after announcing the passenger-friendly measure.
In an order issued on 2 April 2026, to the directorate general of civil aviation (DGCA), the ministry said the decision was taken following representations from industry stakeholders, including the Federation of Indian Airlines and airline Akasa Air which raised concerns over the operational and commercial impact of the rule.
“The matter has been reviewed… highlighting operational and commercial implications… including its potential impact on fare structures and consistency with the prevailing deregulated tariff regime,” the ministry says in the order.
Pending a comprehensive review, the provision requiring airlines to offer at least 60% of seats without additional charges beyond the base fare has been put on hold until further notice.
The move marks a significant U-turn from
the ministry’s 17 March 2026 directive, which had been widely seen as a major step towards improving passenger rights and curbing ancillary charges levied by airlines for seat selection.
The earlier order required airlines to ensure that a majority of seats were made available without extra fees, addressing frequent passenger complaints about being forced to pay for preferred seating.
It also mandated that passengers travelling on the same PNR be seated together, along with improved transparency in policies related to baggage, pets, and special items such as musical instruments.
The government had positioned the measure as part of broader efforts to enhance affordability, transparency, and passenger convenience in India’s rapidly growing aviation market.
However, airlines and industry bodies argued that the mandate could disrupt pricing models and conflict with India’s deregulated fare regime, which allows carriers to set prices based on market dynamics.
Stakeholders also warned that forcing airlines to offer a large proportion of seats at no additional charge could distort revenue structures and potentially lead to higher base fares.
MoCA says it acknowledged these concerns in its latest order, indicating that the policy would undergo further examination before any final decision is taken.
While suspending the 60% free seat provision, the government has directed the DGCA to continue enforcing other passenger facilitation measures introduced last month.
These include ensuring transparency in seat allocation, providing adjacent seating for passengers on the same booking and clearly disclosing charges for services such as carriage of sports equipment, musical instruments and pets.
Airlines are also required to maintain compliance with broader passenger rights norms, particularly in cases of delays, cancellations, and denied boarding.
The sudden rollback has created uncertainty for both airlines and passengers, especially as carriers had begun preparing to implement the earlier directive.
The pause reflects the challenge of balancing consumer protection with commercial viability in a competitive and price-sensitive market.
With the provision now under review, the final shape of the policy will depend on further consultations between the government and industry stakeholders.
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