Competition regulator suspects airline cartel, writes to Govt

New Delhi: India’s antitrust watchdog will investigate the recent spike in domestic airfares. The Competition Commission of India (CCI) has written to the Civil Aviation Ministry that prima facie it appeared that airlines may have acted as a cartel to jack up fares, top official sources told The Indian Express.
The competition regulator has asked the ministry for complete information on fares since June. This data has been maintained by the Directorate General of Civil Aviation’s (DGCA’s) Tariff Monitoring Unit (TMU) since 2009, and is shared with the ministry. But a top official has admitted that the data is hardly ever analysed.
The CCI has taken note of statements by Civil Aviation Minister Praful Patel on referring the fares issue to it. In its letter, it has asked if the ministry did indeed intend to do so. A ministry official said the regulator had not been called in yet, but the CCI can initiate a suo motu probe. Of late as fares have fallen, airlines have claimed they have followed the government’s advice. But an official said the cut in fares has been matched by a cut in the number of seats in the lower-fare categories. Spot fares had zoomed post-Diwali.
23/12/10 Smita Aggarwal/Indian Express

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Categories: Indian Aviation- In General Dec 2010