India mandates free seat selection for 60% of airline seats
→Ancillary pricing restricted across majority of inventory
Change
India directed airlines to provide free seat selection for at least 60% of seats on every flight.
Why it matters
The directive removes a major ancillary revenue stream and forces airlines to restructure fare and pricing models.
Implications
- → Airlines lose seat-selection revenue — fare adjustments required
- → Pricing flexibility constrained — margin pressure increases
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Source
View on Economic Times