Airlines charging passengers a fee for seat selection on an aircraft is “arbitrary and unjustifiable” and the government must keep a close watch on fare pricing, urged a Parliamentary panel in its report on Monday.
Various airlines in the country offer passengers the option to select their seats on an aircraft before a flight. This could cost anywhere between ₹150 to ₹1,000 depending on the location of the seat, with higher costs for more amentities such as a window or aisle seat. Passengers not interested in paying extra could either select a middle-row seat in the rear or wait for a seat to be assigned to them at the time of check-in at the airport.
“The Committee is also of the opinion that fixing of different fares for selection of seats in the same flight is arbitrary and unjustifiable. Hence, Committee on the principle of equity feels that all the seats in a same flight should have same fare,” said a Department Related Parliamentary Standing Committee on Transport, Tourism and Culture in its report.
The panel rejected the response of the Ministry of Civil Aviation on the issue that air travel was “a contractual matter between airline and passenger, which is commercial in nature” as one that was “not at all justified.”
“The Committee is of the opinion that for Civil Aviation sector to grow in an open market, it is justifiable that the private airline operators should be given a free hand to fix the air fares as they are governed by competition. However, the Committee would like to draw the attention of the Ministry to the provision of the Aircraft Rules, 1937, which specifically mentions that the fares should be reasonable and should maintain reasonable profit,” it said.
Airlines in India are allowed to “unbundle” airfares, which lets them break-up their total fare into various service components and charge separately for them. These services include preferential seats, check-in baggage, meals on board, airport lounge access, etc. Over the years, airlines have been pushing the envelope on what fare components can be “unbundled” and in 2018 when various airlines started charging a fee for web check-in, then Civil Aviation Minister Suresh Prabhu intervened and airlines were asked to stop the practice. Two years later, during the pandemic, when the government made it mandatory for passengers to check-in online in order to reduce crowding at airports and maintain social distancing, airlines introduced a fee for check-in at airports. Airlines like IndiGo, SpiceJet and GoAir now charge ₹200 for this service.
The panel has also recommended that the government issue guidelines to ensure that flights on the same route by different airlines should have similar airfares.
