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Fahad, a native of Thrissur, has been arrested for trying to smuggle gold by dipping bath towels in liquid gold and carrying it while travelling from Dubai to Kerala.
The country's largest carrier IndiGo on Wednesday said the removal of airfare caps will help airlines to increase their passenger load factors by offering discounted fares.
A Customs communique here said the male passenger, hailing from Kasaragod in Kerala, was carrying the gold in paste form.
The airline had put the passenger on "no flying list" for 15 days in February.
The order is following at least eight incidents of technical malfunction in its aircraft since June 19.
Airlines such as IndiGo, SpiceJet and Go First currently charge a fee of Rs 200 if a passenger wants the boarding pass to be issued at the check-in counter.
Reacting to the DGCA's show-cause notice to the airline, Civil Aviation Minister Jyotiraditya Scindia asserted that passenger safety is paramount.
The Tata Group took control of Air India on January 27. It plans to buy new planes and improve its services, and it recently started a recruitment drive for fresh cabin crew members.
There was oil leakage in one of the engines of the Q400 aircraft and that is likely the reason for smoke in the plane.
While SpiceJet's IT team has to a large extent contained and rectified the situation, this has had a cascading effect on its flights leading to delays.