India’s leading airlines have opposed the Centre’s proposal to mandate that 60 per cent of seats be offered free for selection, raising concerns over when and how the move was introduced, why it could disrupt pricing structures, and what impact it may have on passengers and the aviation sector.The Federation of Indian Airlines (FIA), representing Air India, IndiGo and SpiceJet, has written to the Ministry of Civil Aviation (MoCA) after the directive was issued earlier this week, questioning the rationale behind the decision and warning that it could lead to higher airfares across the board.At present, airlines allow passengers to either pay for preferred seats during web check-in or opt for random allocation at no extra cost. Premium seats, such as those with extra legroom, attract higher charges. The proposed move is expected to shrink a key ancillary revenue stream for airlines.The letter dated March 19 said that imposing a uniform restriction on ancillary revenue undermined commercial flexibility and interfered with market-driven pricing mechanisms.The industry body has underlined that airlines operated on thin margins and relied on ancillary revenues to offset rising operational costs, including fuel, maintenance and airport charges. It has cautioned that any hit to this income stream would have a cascading effect on fares.The letter said that the financial impact of this directive on airlines would be significant, compelling airlines to recover the lost revenues through fare hike. “As a result, all passengers, including those who may not wish to preselect seats, will end up paying higher fares,” it further said.The FIA has argued that while the proposal may appear passenger-friendly at first glance, the broader outcome would be counterproductive.The letter also raised concerns over regulatory overreach, questioning the ministry’s direction to the Directorate General of Civil Aviation (DGCA) to act on seat-selection pricing. “The directive raises serious concerns regarding regulatory overreach into commercial aspects of airline operations,” it noted.Citing the government’s own stance in Parliament, the FIA referred to a Lok Sabha reply dated February 12, which said that airfares were not regulated and airlines were free to determine pricing based on market conditions, subject to compliance with rules.The federation argued that intervention in pricing had traditionally been limited to exceptional situations such as the pandemic or major disruptions, and that unbundled pricing allowed passengers to pay only for services they chose, keeping base fares lower.The FIA has also flagged the absence of stakeholder consultation before the directive was issued. “No stakeholder consultation was undertaken before the issuance of the directive on March 18,” the letter said. It warned that such measures could create uncertainty and set a precedent for deeper regulatory intervention in pricing.“If applied, this measure will set a precedent for excessive intervention in ancillary pricing with heavy loss of revenues for the airlines, apart from creating uncertainty for airlines regarding future regulatory constraints. Hence it is proposed that this mandate to the DGCA be withdrawn and the currently prevailing rules continue,” the letter said.Backing its stance with legal precedent, the federation said the regulator lacked the authority to cap or fix charges for optional services. “Judicial pronouncements have clearly established that the DGCA does not have the power to fix or cap charges for unbundled services,” the FIA said. “In light of the above, the mandate may be withdrawn,” the industry body said.