India, March 22 -- The ministry of civil aviation has withdrawn temporary fare caps on domestic airfares that had been in place since December, saying the situation that prompted the controls had stabilised - but warned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 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 t...