CCI warns aviation industry against fixing prices

New Delhi: The Competition Commission of India (CCI) today warned the aviation industry from attempting to fix minimum fares for air travel and said any such moves would come under its scanner by the year-end, once the regulatory authority becomes operational.
Speaking at the diamond jubilee celebrations of the Institue of Chartered Accountants of India , Vinod Dhall, acting chairman, CCI, said, "The aviation industry can disscuss the increased prices of ATF but can never decide on their own what should be the minimum fare that they should charge. Competition law was envisaged keeping in mind such situations only, where a price cap put by a particular industry acts against the interests of consumers".
Reacting to Dhall's comment, airlines said the Competition Commission should first look at bigger cartels like oil companies, which are responsible for the huge fare increase over the last few months.
The aviation industry has been looking at various measures to cut losses that carriers have been incurring due to increased fuel prices in the past few months.
02/07/08 Business Standard

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Categories: Indian Aviation- In General Jul 2008