Unbundling in aviation: Preference seats may be capped at 15%

The civil aviation ministry is looking to cap the number of preferential seats that an airline can offer in a flight following reports that some airlines were charging for a large number of seats, while one of them was even charging for the middle seat.

According to a report in the Economic Times, the ministry will ask airlines to fix 15-20 percent as the percentage of preferred seats, while it is also planning to prescribe dos and don’ts to the airlines on its policy of unbundling airfares. A circular will soon be issued in the matter.

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Currently, charges on domestic flights range between Rs 200 and Rs 500 for a preferred seat, depending on the row/location.

According to a report in the Hindu Business Line, airlines will have to mention on their websites that bookings can be made with or without preferred seat charge. Airlines will also have to ensure that at the time of booking, no child or a person with limited mobility can be offered seats on the emergency exit rows, even if the passenger is willing to pay more.

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Earlier this month, the government had allowed unbundling of services on aircraft, allowing airlines to charge for a host of services including a charge for preferential seating, check-in baggage and meals.

Centre for Aviation, or CAPA, believes unbundled services could generate an additional $500 million in revenues for the aviation industry.