India mandates 60% free seat selection on flights
Change
India directed the Directorate General of Civil Aviation to require airlines to allocate at least 60 percent of seats on every flight for free selection and forbid any charges for those seats.
Why it matters
The directive removes a targeted ancillary revenue source that airlines use to offset rising operational costs, reducing carriers' ability to price optional services. It constrains how airlines can design and charge for ancillary bundles and requires operational changes to booking and revenue-management systems.
Implications
- • Scheduled passenger carriers must remove seat-selection charges for at least 60 percent of seats and update their reservation and billing systems to comply.
- • Scheduled passenger carriers' revenue-management and commercial teams must redesign ancillary bundles and repricing strategies to replace lost fee income.
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