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Government takes U-turn on order to provide 60% free seating for airlines; postpones it

Government takes U-turn on order to provide 60% free seating for airlines; postpones it

New Delhi: In a U-turn, the Civil Aviation Ministry on Thursday put on hold its directive to airlines to make at least 60% seats free. Under intense pressure from the cost side since the start of the Iran war, airlines had warned that the move to curb ancillary revenues would lead to additional fare increases.On March 17, the Aviation Ministry had ordered the Directorate General of Civil Aviation (DGCA) to make rules for this. Subsequently, the regulator had amended the existing rules to enforce at least 60% free seating from April 20.On Thursday, the ministry again wrote a letter to DGCA asking it to postpone its earlier order. “The matter has been reviewed in the light of representations received from the Federation of Indian Airlines (IndiGo, Air India Group and SpiceJet) and Akasa Air, highlighting the operational and commercial implications of the above provision, including its potential impact on fare structures and consistency with the prevailing regulation tariff regime,” it said, referring to lobbying by the carrier.The order said, “…it has been decided that the provision related to giving at least 60% seats free will be kept in abeyance till further orders.”Thursday’s order, however, reiterated that “DGCA may, however, ensure continued enforcement of other passenger convenience measures… including transparency in seat allocation, co-seating of passengers on the same PNR, carriage of musical instruments, sports equipment and pets and clear disclosure of applicable charges.”The airline said paid seat selection is an ‘opt-in’ service designed for passengers who prioritize specific preferences. An industry executive said, “Free seats create a cross-subsidy, where the cost of the ‘free’ seats is indirectly borne by other price conscious customers. Moreover, seat selection will be unfavorable for families or elderly passengers as all the good seats will be allotted by passengers who book first, hence a lesser number of seats will be available for such people.”

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