New Delhi, March 19 -- Ideally, the government should restrict its role in any sector to framing the policy under which all players must do business and leave pricing and other strategic decisions to participants. But when a market isn't well contested, state intervention may be justified.

This is the case with Indian aviation, where the government has gone into the minutiae of seat pricing in the interest of passengers. It has directed airlines to ensure that at least 60% of a flight's seats are offered free of add-on charges for seat-location preferences and see that those travelling together are seated that way.

This should always have been the practice. But what began as extra fees for prized seats turned into an extractive game onc...