The Indian government has refused to impose a capping on airfares, citing multiple reasons. These include:

• The Indian aviation industry is a competitive market, and airlines should be free to determine their own prices based on consumer demand. A price cap may lead to reduced competition and result in cheaper tickets for some passengers, but it may also lead to the elimination of small airlines, reducing options for consumers in the long run.
• During peak travel periods, airlines experience a surge in demand, and it may be difficult to regulate prices during such times. A cap may result in long waiting periods for flights and passengers may resort to other modes of transport.
• Due to the ongoing COVID-19 pandemic, airlines are currently struggling financially, and a cap on ticket prices may further impact their revenue stream and the employment of thousands of people in the aviation industry.

Overall, while a price cap may appear attractive to consumers in the short-term, it may have long-term impacts on the industry and should be approached with caution.