Airlines could face probe over surcharge

Mumbai: Domestic airlines charging passengers the same fuel surcharge are likely to be investigated by the country’s antitrust overseer that feels it is unlikely that all carriers arrived at the same fee while operating in different business circumstances.
“The same fuel surcharge arouses suspicion of fixing prices. It is very unlikely that airlines arrived at the same amount though all have different costs,” said Augustine Peter, economic adviser at the Competition Commission of India.
The carriers, however, say that they are merely passing on to their customers the uniform price increases in jet fuel by state-owned oil retailers.
Maintaining that there could be, on the face of it, evidence of price fixing, Peter said the regulator has not received any complaint from industry stakeholders on the fuel surcharge issue. “I cannot offer a comment on price-fixing issue at this point of time. But there is a potential issue for a serious investigation,” he said.
Domestic airlines are currently charging Rs2,350 per ticket on long-haul routes and Rs1,950 per ticket for short flights as fuel surcharge, which is paid in addition to basic fare, taxes and other charges.
17/05/08 P.R. Sanjai/Livemint

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Categories: Indian Aviation- In General May 2008