Indian airline facing policy changes.
Airlines in India are contesting a government directive mandating free seat selection, cautioning that this policy could trigger a sharp increase in ticket prices. The Federation of Indian Airlines (FIA) has voiced concerns that the mandate would escalate costs for all travelers.
The FIA referenced a prior court ruling and government statements that supported market-driven fares. They argue that forcing airlines to offer free seat selection undermines this principle and could negatively impact the financial health of the sector.
The airlines maintain that the added cost of free seat selection will inevitably be passed on to consumers, potentially making air travel less accessible for price-sensitive segments of the market. The industry body is seeking a dialogue with the government to find an alternative solution that balances consumer interests and the economic realities of operating an airline in India.