Mint Explainer | Will suspension of 60% free seat-selection mandate help airlines offset rising jet fuel costs?

The civil aviation ministry on Thursday has suspended a decision requiring airlines to offer passengers free selection for at least 60% of the seats on a flight. Mint examines whether this will help airlines offset rising aviation turbine fuel costs triggered by the war in Iran.Last month, the country’s aviation regulator asked airlines to offer 60% of the seats on every domestic flight to be selected free of charge, allowing passengers to choose them without paying an additional fee.

It also mandated that all passengers booked on one PNR should be seated together.The directive came amid concerns over steep seat-selection fees. The civil aviation ministry said on 18 March it asked the regulator to step in and ensure more equitable access for passengers.The Centre said in a letter dated 2 April to the Directorate General of Civil Aviation, the sector regulator, that the directive would remain suspended until further orders, pending a review of the matter.

Mint has reviewed a copy of the letter.The move had triggered strong objections from the Federation of Indian Airlines and Akasa Air, which submitted representations highlighting the operational and commercial implications of the rule. They said such a mandate would disrupt existing fare structures under India’s deregulated aviation pricing regime.

As per the Federation of Indian Airlines website, its members include IndiGo, Air India and SpiceJet.According to industry estimates, airlines such as IndiGo earn 0.5%-1% of their revenue from seat-selection charges, though the exact contribution is not disclosed. While the average fee is about ₹300 per seat, only a small portion of passengers actually pay for selection, limiting the overall contribution.