Should airlines charge for allotting preferred seats?

GN Bureau | July 20, 2011



Commercial airlines, even the budget ones, have been known to exact stiff charges under many heads from their customers. One such head is allotment of a preferred seat.

The going rate for choosing a seat in advance could set one back by as much as Rs 50 to Rs 750. The trend is that all seats are charged for preferential booking, with the charges going up for international flights and a front row seat or one by the emergency exit.

This pricing was in violation of a DGCA order from November 2010, making it mandatory for domestic airlines to submit an advance fare with details of minimum and maximum tariff on the first day of every month and also publish the fares on their websites. So, the DGCA has ordered the airlines to immediately cease this fluid pricing.

While it is only right to enforce a law in it words, one must also think of the spirit behind it. The law was enforced to keep airlines from pricing tickets at a premium depending on seat availability. Upper caps of tarriffs were to be kept from being exorbitant. The rule does that to some effect.

But should it also mean that the airlines cannot put a premium on a passenger's choice. After all, a front row seat is nearer to the exit and a seat near the emergency exit offers a lot of leg room - both comforts that any passenger would wish for and perhaps, be ready to pay extra for. At a time when almost all airlines are in the red and are gratuitous in seeking of all sorts of subsidies from the government, is it not pragmatic to shift a little bit of the burden on to passengers?

However, it is also true that this pricing does encourage the idea of differential pricing, which defeats all rules laid down by the government. Also, the regulation of this premium pricing is a difficult task.

So, our poser is whether the airlines should do away with the charges on preferred seat booking or not.

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