India, March 21 -- The Ministry of Civil Aviation (MoCA) on Saturday withdrew 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The caps will now stand withdrawn with effect from March 23, according to a MoCA order. The Directorate General of Civil Aviation has been asked to monitor airfares across the sector on a real-time basis.

This comes two days after a meeting between the three airlines - Air India, IndiGo and SpiceJet - and the civil aviation ministry, held on March 18. The airlines are learnt to have flagged severe operational issues due to the ongoing W...