Airlines have been ordered not to charge passengers for booking preferred seats in advance, a move industry executives say will hurt earnings.
Low-cost private carriers SpiceJet Ltd, IndiGo, run by InterGlobe Aviation Pvt. Ltd and GoAir (India) Pvt. Ltd as well as Air India Express, the low-fare international subsidiary of state-owned Air India Ltd, allow passengers to opt for particular seats, for an extra charge, while booking tickets on their websites. Making such a choice is not mandatory.
“All the scheduled domestic airlines are directed to withdraw such charges with immediate effect under intimation to this office,” the regulator Directorate General of Civil Aviation (DGCA) said in a letter to the airlines on Friday, a copy of which has been reviewed by Mint. “Any mention about the same on the website may also be deleted on an immediate basis.”
Since November last year, DGCA has made it mandatory for domestic airlines to submit an advance tariff sheet, with details of minimum and maximum fares, on the first day of every month. They also have to publish the fares on their websites.
The regulator’s letter said that airlines are violating these guidelines by charging passengers for booking particular seats. “Some airlines are charging this amount for the entire seat inventory, which is contrary to the provisions of rule 135 of the Aircraft Rules, 1937, contained and totally unjustified,” the letter said.
18/07/11 Tarun Shukla/Live Mint
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