India’s aviation regulator has finally decided to take a hard stance on one of the most frustrating aspects of modern flying: paid seat selection.
DGCA notifies 60% free seat selection
When Indian aviation was introduced to the concept of unbundling, the government allowed them to offer 25% of seats on a plane, and middle seats could not be charged for pre-blocking. Then, in 2015, airlines were allowed to charge for seat selection on 100% of seats.
Now, in an undoing of its own rules, and perceivably under social media pressure, the Indian regulator, the Directorate General of Civil Aviaiton (DGCA) has mandated that airlines make at least 60% of seats on every flight available free of charge, while also ensuring that passengers travelling on the same PNR — typically families or groups — are seated together, preferably adjacent to each other. The move comes after a steady rise in complaints on social media about airlines charging for even basic seat assignments and splitting travellers unless they paid extra.
From vague guidance to a hard rule
For over a decade, the DGCA’s framework around seating was largely non-prescriptive. The only notification was to ensure that kids were seated with at least one parent. There was no defined minimum for free seat allocation, which allowed carriers to steadily expand the scope of paid seating.
Over time, this evolved into a near-universal practice in which most aisle, window, and forward seats were monetised, leaving only a shrinking pool of random seats at the back available for free allocation at check-in. Families often ended up split across rows unless they paid, turning what should be a basic service into a revenue lever, as is the practice globally.
The new directive changes that equation decisively by introducing a clear floor of 60% free seats. It has also reinforced group seating obligations, effectively limiting how aggressively airlines can carve up the seat map for monetisation. So far, this notification has only come through a press release, not via a change to the ATC 01, which governs unbundling.
Why does the regulator choose to step in now?
The trigger here is simple: passenger backlash on social media. Here is the complete text of what all changes:
To further strengthen passenger convenience, transparency and uniformity of practices across airlines, the Ministry has issued the following directions through the Directorate General of Civil Aviation (DGCA):
- Minimum 60% of seats on any flight are to be allocated free of charge to ensure fair access
- Passengers travelling on the same PNR are to be seated together, preferably in adjacent seats
- Carriage of sports equipment and musical instruments to be facilitated in a transparent and passenger-friendly manner, subject to applicable safety and operational regulations. Airlines shall also bring out clear, transparent policies for the carriage of pets.
- Strict adherence to the passenger rights framework, particularly in cases of delays, cancellations and denied boarding
- Prominent display of passenger rights across airline websites, mobile applications, booking platforms, and airport counters
- Clear communication of passenger entitlements in regional languages to ensure wider accessibility and awareness
Regulators have explicitly framed the move as a response to “one of the biggest grouses of air travellers” — the proliferation of add-on fees for basic services. The directive is also part of a broader push that includes clearer rules on baggage (including sports equipment and musical instruments), better communication of passenger rights, and stricter enforcement of entitlements during disruptions.
Now, this notification is light on the details, so we don’t know what the exact language is per the rules. Which airlines it applies on, for one.
Markets react, airlines recalibrate
Seat selection fees, along with baggage and in-flight meals, are among the highest-margin revenue streams for no-frill carriers. IndiGo recorded ancillary income of INR 2,446 Crores in Q3FY26, accounting for about 10% of total income for the quarter. By mandating that a majority of seats be free, the DGCA has effectively capped a key monetisation lever.
However, this does not mean airlines will stop charging. Instead, expect a recalibration. Airlines will likely reclassify more seats as “premium”, tighten inventory controls, and push bundled fares that include seat selection, meals, or baggage. In other words, the revenue will move — not disappear.
What this means going forward
In the short term, passengers should see immediate relief. Booking flows that aggressively nudged travellers toward paid seats will need to be reworked, and families will likely have a better chance of sitting together without additional cost.
But over the medium term, airlines will adapt. The most likely outcome is a shift in pricing architecture, with slightly higher base fares or more prominent bundled products compensating for lost ancillary income. The distinction between “free” and “paid” seats may also become more nuanced, with airlines protecting the most desirable inventory under new labels.
The longer-term implication is more significant. This directive signals a more interventionist DGCA, willing to step into commercial practices. That opens the door to future scrutiny of other ancillary fees — from baggage pricing to change penalties — especially as India’s aviation market continues to scale rapidly.
Bottomline
For years, airlines turned seat selection into a revenue machine. The DGCA has now put a ceiling on that strategy by notifying a cap of 60% seats to be kept free of charge. Passengers win in the immediate term. Airlines will find ways to adapt, as they always do. But the balance has shifted – for once, decisively in favour of the traveller. Certainly their plan to allow for unbundling “to allow affordable fares” did not work.
What do you make of the new rules, supposedly to be notified by the DGCA?
Liked our articles and our efforts? Please pay an amount you are comfortable with; an amount you believe is the fair price for the content you have consumed. Please enter an amount in the box below and click on the button to pay; you can use Netbanking, Debit/Credit Cards, UPI, QR codes, or any Wallet to pay. Every contribution helps cover the cost of the content generated for your benefit.
(Important: to receive confirmation and details of your transaction, please enter a valid email address in the pop-up form that will appear after you click the ‘Pay Now’ button. For international transactions, use Paypal to process the transaction.)
We are not putting our articles behind any paywall where you are asked to pay before you read an article. We are asking you to pay after you have read the article if you are satisfied with the quality and our efforts.
Leave a Reply