9 foreign airlines cleared of cartelisation charge

New Delhi: The investigation wing of the Competition Commission of India (CCI) has cleared nine foreign airlines of cartelisation and abuse of dominant position charges, pressed by the Travel Agents Association of India (TAAI).
The report of the Director General (Investigations) was given to CCI on January 27, and this will form the basis of further hearings of the fair trade watchdog. The next hearing of CCI is on March 3.
TAAI had approached CCI in December 2009 after the airlines — Lufthansa German Airlines, Continental Airlines, KLM Royal Dutch Airlines, Swiss International Airlines, Singapore Airlines, Air Canada, Air France and North West Airlines — announced their decision to end the practice of giving commissions to travel agents for ticketing services.
In its petition to CCI, the association alleged the decision to reduce the “Standard Agency Commission” from five per cent to zero from November 1, 2009 was an anti-competitive move. It also said the airlines were part of two international networks, Star Alliance Network and Sky Team Alliance, thereby pointing towards a potential cartelization that led to the joint decision.
17/02/11 Joe C Mathew/Business Standard

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Categories: Foreign Feb 2011