Mar 21 • 03:55 UTC 🇮🇳 India Aaj Tak (Hindi)

IndiGo and Air India Warn of Price Hikes Following DGCA's Order

IndiGo and Air India have warned that ticket prices will rise as a result of a new government directive requiring airlines to offer free seat selection on 60% of their flights.

The Directorate General of Civil Aviation (DGCA) has mandated that airlines in India, including major players like IndiGo and Air India, must provide free seat selection for 60% of their flight tickets, a decision that has drawn strong opposition from the airlines. This regulation requires airlines to rethink their pricing structures, as they typically charge for designated seats, especially premium ones. Airlines argue that this directive undermines their revenue model and could lead to overall fare hikes for passengers.

The Federation of Indian Airlines (FIA), which represents prominent carriers such as IndiGo, Air India, and SpiceJet, has formally protested against this measure, asserting that without the ability to charge for seat selection, ticket prices will inevitably escalate. The FIA's communication to the Ministry of Civil Aviation highlights that the charges currently allocated for seat selection would need to be adjusted into base ticket prices, ultimately shifting the financial burden to passengers, thus contradicting the intended affordable travel goal of the mandate.

This development raises significant concerns about the future of airline ticket pricing in India, particularly as the industry grapples with recovery from the pandemic. The government's intent to make air travel more accessible is positioned against the economic realities faced by airlines, which may find it challenging to absorb the financial implications of such a regulation without passing costs onto consumers. As air travel demand continues to increase, the balance between affordability and airline sustainability becomes a critical discussion point.

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