DGCA's Free Seat Selection Mandate Suspended Weeks Before April 20 Implementation Date

On March 18, 2026, the Directorate General of Civil Aviation (DGCA) mandated that all domestic carriers allocate a minimum of 60% of seats on every flight, free of charge for selection, effective April 20, 2026. The intent was to eliminate long-standing consumer frustrations with airlines charging ₹200 to ₹2,100 per seat for seat selection or upgradation. Moreover, before the mandate, airlines had only offered around twenty percent (20%) of their available seating to be selected as "free", as reported by The Tribune India.

However, the March 18 directive was suspended by the DGCA on April 2, 2026,* in an official letter, indicating that the provisions would be placed "in abeyance until further orders," pending "a thorough and comprehensive review" (Business Today, April 2, 2026).

What the Original Directive Said

The March 18 directive contained multiple reforms beyond free seat selection. As per The Tribune India, the DGCA also mandated that passengers booked under the same PNR (Passenger Name Record) be seated together in adjacent seats. Airlines were required to publish transparent policies for the carriage of pets, musical instruments, and sports equipment. Additionally, the regulator required all airlines to display the passenger rights, including compensation for delays and cancellations, prominently on websites, apps, and airport counters in regional languages. Considering there are currently over five lakh (500,000) passengers passing through airports in India daily (per The Tribune India), the impact of these new regulations would have been significant.

Key Insight

India's passenger protection framework reversed faster than it was announced. The 15-day policy lifecycle went from directive to suspension

The Airlines Pushed Back and Counteracted

The Federation of Indian Airlines (FIA), representing the three major airlines (IndiGo, Air India, and SpiceJet), wrote to Civil Aviation Secretary Samir Kumar Sinha by way of a letter dated March 19 that the directive will have “unintended and adverse consequences” for the industry. The estimate provided in the FIA letter indicated that the seat selection option generates roughly 8-12% of the ancillary revenue generated by low-cost carriers operating in India. Airlines operate on relatively narrow margins and would use the ancillary revenue generated through seat selection to offset the increasing operational expenses associated with providing air transportation services.

FIA stated in its letter that, through mandating a price cap on chargeable seat selections, airlines would be forced to increase base airfare, thereby adversely impacting the same passengers for whom the government purportedly introduced the price capping policy. Akasa Air made separate submissions in opposition to the price cap on chargeable seat selection. FIA also cited a 2017 court ruling by the Delhi High Court that confirmed preferential seat selection to be a legitimate stand-alone service and that the DGCA lacks the authority to establish a maximum price for such a service, according to reports published by The Federal. Therefore, the Government of India capitulated within two weeks of the introduction of the price capping policy upon receiving the foregoing input from the FIA.

Key Insight

Seat selection fees represent 8–12% of ancillary revenue for Indian LCCs,making the DGCA's 60% free seat mandate a direct hit on the revenue model

The Bigger Question: Where does Passenger Protection Stand?

Approximately 5,00,000 people fly daily in India, which is now one of the largest domestic aviation markets in the world (3rd overall). All of the major airlines charge seat selection fees that range anywhere from ₹200 to ₹2,100 per booking. When the government announced the revision (the "comprehensive examination") of the rules governing seat selection fees, the airlines protested within 24 hours of the announcement. Two weeks later, the government withdrew the rule completely and will now conduct its "comprehensive examination" of seat selection fees (without a timeline). Meanwhile, passengers boarding flights on April 20, the original implementation date, will find the policy still "in abeyance," the seat fees still active, and the 80% paywall on seat selection exactly where it was before March 18.