Airlines asked to explain on price hike by May 25

New Delhi: Officials of the Competition Commission of India (CCI) will meet private airline officials May 25 to seek their explanation on the sudden hike in fares during the 10-day strike by Air India pilots, an official said.
"Our officers will meet them on May 25. That day we will seek replies from them. This new date was set after our first meeting on Friday, when the airlines' officials requested for more time," a senior official with the competition watchdog said Saturday.
Earlier, notices were issued by CCI seeking an explanation from private sector airlines on allegations that they hiked fares to cash in on the strike when thousands of passengers, stranded after their Air India flights were cancelled, had to shell out between 50 percent and 75 percent more for bookings.
"The CCI is currently probing all angles like collusion and predatory pricing. They are expected to give a report by 60 days," the official said.
Passengers complained that the base fare on a Delhi-Mumbai flight, which goes up to Rs.2,400-Rs.3,000 for last-minute bookings, had gone up to as much as Rs.7,500 on some airlines, resulting in a total one-way cost of Rs.11,500, including various levies.
14/05/11 IANS/Economic Times

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Categories: Indian Aviation- In General May 2011