India orders airlines to offer 60% of seats free
Change
India directed the Directorate General of Civil Aviation (DGCA) — India's aviation regulator — to implement a mandate requiring carriers to make at least 60% of seats on each flight available for free seat selection.
Why it matters
The directive removes a previously voluntary ancillary revenue channel for most passengers, forcing carriers to internalise those revenues. Airline commercial and pricing teams are now constrained to change published fare structures or re-bundle services to prevent margin compression.
Implications
- — Airlines' commercial and pricing teams must redesign published fare structures or bundled ancillaries to recover lost seat-selection revenue or face sustained operating-margin erosion.
- — Low-cost carriers' commercial teams must reprice price-sensitive routes or implement targeted surcharges to avoid disproportionate margin losses on budget services.
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