Govt says it generally refrains from regulating airfares but remains vigilant

Indian Aviation Industry: The Indian government is monitoring airfares but generally avoids regulation to maintain market competition. Increased aircraft capacity and airport development have boosted passenger traffic. While airlines set prices based on supply and demand, the government intervenes to prevent excessive pricing, especially during peak seasons. The Directorate General of Civil Aviation (DGCA) has a Tariff Monitoring Unit (TMU) to check on predatory/excessive pricing by airlines.