Government Puts Airline Seat Pricing Order on Hold After Industry Pushback in A Rare Move !

In a significant policy shift, the government has rolled back its earlier directive requiring airlines to keep at least 60 percent of flight seats available for booking without extra charges. The move comes after strong objections from carriers, which cited operational challenges and potential commercial losses arising from the order.

The earlier directive was introduced to promote fair access and prevent disproportionate seat pricing practices that burdened passengers. However, airline operators argued that such restrictions interfered with revenue management systems and dynamic pricing models essential for viability in a competitive market.

Following multiple rounds of consultations with industry stakeholders, the Ministry of Civil Aviation has now kept the provision in abeyance pending further review. For the moment, airlines are required to ensure that 20 percent of seats remain available for booking without additional charges beyond the base fare. Officials said the decision balances passenger interest and industry sustainability while the broader pricing framework is reassessed.

 

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