Airlines may introduce fee for preferential seats

Airlines were charging for front row seats with more leg room, but they had to discontinue it following passenger complaints

Director General of Civil Aviation may once again allow domestic airlines to charge for on board service like preferntial seats or drinking water. World over airlines charge extra fee to passengers for meals, luggage and choice of seats as a means to shore up revenue. However last year  the DGCA disallowed domestic airlines to charge passengers for seat selection and instructed them to provide free drinking water.

Director General of Civil Aviation Arun Mishra told media persons in Mumbai on Tuesday that he is reconsidering the decision. "The airlines have given an application on the issue and we will consider it. We will have an open mind,'' Mishra stated.

 

Airlines were charging Rs 50-to upto Rs 400 for choice of seats the higher charge usually reserved for front row seats with more leg room. However, following passenger complaints Mishra's predecessor E K Bharat Bhushan directed the airlines not to charge for seats and water. Domestic airlines objected pointing out that it was practice amongst airlines around the world to charge passengers for on board services but till now DGCA has stood ground.

Globally, airlines made $32.5 billion from ancillary revenue in 2011, with those in America accounting for the highest share. For some, share of ancillary revenue is 18-20 percent of total revenue and for some, it is a modest two to five per cent.  Recently Jet Airways chief executive officer Nikos Kardassis said the airline  is looking to increase its ancillary revenue by $200-300 million (Rs 1,100-Rs 1,650 crore) from current  $170 mn (Rs 935 crore)  revenue last year. Such revenue typically includes on-board sales, advertising, fees on baggage, etc.