The ministry of civil aviation has withdrawn temporary fare caps on domestic airfares that had been in place since December, saying the situation that prompted the controls had stabilised — but warned airlines that excessive pricing would invite re-imposition of controls.. The Federation of Indian Airlines also wrote a letter warning of route withdrawals and delayed fleet and network expansions unless the caps were revoked. (Reuters). The decision comes two days after airline representatives reportedly met government officials to discuss challenges caused due to the West Asia conflict that has sent fuel prices skyrocketing and choked several international flight routes.. The Federation of Indian Airlines, which represents IndiGo, Air India and SpiceJet also wrote a letter warning of route withdrawals and delayed fleet and network expansions unless the caps were revoked. According to Reuters, the FIA told the government that Indian airlines were incurring “huge” revenue losses and facing higher operational costs.. ALSO READ | West Asia conflict: India managing fuel crisis well, says Rajnath Singh. The caps — between ₹7,500 to ₹18,000 on economy routes depending on flight distance — will now stand withdrawn effective March 23, according to a MoCA order. “Airlines shall ensure that fares remain reasonable, transparent and commensurate with market conditions, and that passenger interests are not adversely impacted,” the order said. It added that any instance of excessive or unjustified surge in fares — particularly during periods of peak demand, disruptions or exigencies — “will be viewed seriously.”. ALSO READ | Iran war hits India fuel rates, prices of premium petrol hiked by ₹2. The ministry explicitly reserved the right to reimpose fare controls or take other regulatory measures if required in the public interest.. The caps had been introduced on December 6, following large-scale flight cancellations by IndiGo that caused widespread disruption, with the government citing the need to protect passengers during a period of constrained capacity.
