•Federation of Indian Airlines (FIA) warns carriers may pass on costs to passengers, impacting ancillary income.
•FIA raises concerns about regulatory overreach into commercial decisions, citing legal precedents against DGCA's power to fix unbundled service charges.
•Airlines argue the directive is inconsistent with settled law and principles affirmed by the Delhi High Court.
•The industry body states no stakeholder consultation occurred before the March 18 directive and urges its withdrawal.