NEW DELHI: A body representing three leading airlines has written to the Civil Aviation Secretary opposing the recent decision that no charges must be levied for seat selection on a minimum of 60% of the seats. It has warned that airfares will go up as airlines could take other measures to recover the loss in income.
It has appealed to the Secretary to roll back the move, saying it would have unintended and adverse consequences for the sector.
Airlines presently charge between Rs 150 and Rs 3,500 (in case of international flights) for prior seat selection. Aisle seats, window seats, and front row ones with more leg space are most preferred by passengers, and most get booked in advance.
The Federation of Indian Airlines, which represents Indigo, Air India, and Spicejet, said, "The financial impact of the directive on airlines will be significant, compelling airlines to recover the revenues through increases in fares. As a result, all passengers, including those who may not wish to preselect seats, will end up paying higher fares."
It also noted that seat selection fees are a valid revenue stream for airlines, it said. "Airlines operate on thin margins and depend heavily on ancillary income to manage increasing costs such as fuel, maintenance, and airport charges. Imposing uniform restrictions on these revenue streams, the body argued, would limit commercial flexibility and disrupt market-driven pricing,” the communication said.
"If applied, this measure will set a precedent for excessive intervention in ancillary pricing with heavy loss of revenues for the airlines, apart from creating uncertainty for airlines regarding future regulatory constraints," the federation added.