The Centre is justified in protecting passenger interests, by mandating that airlines make available at least 60 per cent of flight seats ‘free’ — that is, with no add-ons to the ticket price. The additional charges for such premium seats — which are typically towards the front of the aircraft or alongside windows and the aisle —sometimes account for between 5- 10 per cent of the total fare. By also directing airlines to seat passengers on the same PNR together, the government has removed a pain point for travellers. The new rules may not significantly impact finances of airlines as ancillary revenues — including seat prices, food and beverages and excess baggage — do not exceed 10 per cent of total revenues, in general. But they make a world of difference to passengers.
There are two consumer concerns here: the price being paid; and whether this is disclosed upfront or concealed in hidden charges, only to be revealed when the ‘payment’ window comes up, as for example, convenience fee. Indeed, it is compelling to argue that in a free market, the government should not meddle with pricing decisions of business, but leave it to market forces instead. However, the question here is whether free market forces are really working in a duopoly market, one in which IndiGo is way ahead of Air India. To be sure, there have been both demand and supply side factors driving up prices. Geo-political disruptions have upset flight schedules and costs, while passenger traffic too has been rising sharply. Even in a more competitive market, prices would have risen; the question is, whether episodic price spurts are justified, and whether the consumer is duly informed about hidden charges while purchasing the ticket.
India is not alone in the matter of dealing with flyer-unfriendly practices. In 2024, the US’ Department of Transportation came down on ‘drip’ pricing practices of airlines there and required the display of all fees at one go, though this was challenged in court. The UK issued similar norms on transparent pricing under a 2022 Act. The European Court of Justice recently ruled that airlines must refund the full amount paid — including booking fees — rather than slice up charges. The Centre should ask airlines and booking platforms to display the full cost of a ticket at the beginning of the booking process, rather than conceal it in convenience fees or seat pricing.
Rising passenger traffic conceals the fact that consumers are not a homogeneous lot — they could be corporate/institutional travellers, tourists, or budget-strapped individuals and families. Therefore, having more free seats is only fair. However, price regulation should be a light-touch affair — to monitor any unusual spike in prices, or hidden charges, while at the same time allowing demand and supply to adjust. In the long run, the best deal for consumers is to have more airlines. A level-playing field for smaller airlines is being attempted, but there’s a long runway ahead.
Published on March 23, 2026