MRTPC orders probe into air fare hike

New Delhi: The anti-monopoly watchdog Monopolies and Restrictive Trade Practices Commission (MRTPC) has ordered a probe into the sudden air fare hike by airlines in unison.
The decision comes close on the heels of strong statements by Civil Aviation Minister Praful Patel yesterday against a possible cartelisation following which, the aviation regulator, Directorate General of Civil Aviation (DGCA) shot off a letter to airlines asking for details of the fare hike. This had led to Mumbai-based full service carrier Jet Airways re-introduce its special fares of Re 1 and Rs 300. The government sources said that the airlines were supposed to submit the details by February 14.
Apart from the private airlines like Jet Airways and Kingfisher, the fare hike by national carrier Air India will also be examined by MRTPC. Patel had yesterday categorically defended the national carrier, saying that it would not be part of any such cartel and that its fares would be significantly lower than those of Jet and Kingfisher.
"Sudden simulatanous hike in fares and withdrawal of promotional fares, both fall under restrictive trade practices under section 33 (i) (d) and 33 (i) (j) of the MRTPC Act," said the official and added that Director General of Investigation and Registration (DGIR), the investigating arm of MRTPC, has to submit the investigation report before the commission within 60 days.
"If the companies are found guilty, they will asked to cease and desist," he added, meaning that the airlines would have to roll back the high end fares.
According to the section 33 (i) (d) any agreement to buy or sell goods or to tender for the sale or purchase of goods only at prices or on terms of condition agreed upon by sellers or purchasers are restrictive trade practice and banned under the MRTPC Act, 1969. Likewise, the airlines have violated section 33 (i) (j) by getting into cartelisation to monopolise the Indian market.
12/02/09 Business Standard

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Categories: Indian Aviation- In General Feb 2009