Corporate affairs ministry asks CCI to probe rise in air fares

New Delhi: The corporate affairs ministry has asked the competition regulator to probe the recent rise in air fares for possible cartelization by airlines. The ministry has noted the sudden hike in air ticket rates in the last 4-8 weeks and has referred the case to the Competition Commission of India (CCI).
"We are aware of the simultaneous rise in prices of almost all domestic carriers and have asked the Competition Commission to look into it," corporate affairs minister Veerappa Moily said on the sidelines of an event organized by the Institute of Cost Accountants of India. Air fares have risen nearly 50% on many routes in the last couple of months, as troubled airlines have cut capacity in order to cut losses.
The aviation regulator Directorate General of Civil Aviation (DGCA) had last month asked airlines to maintain discretion while deciding route-wise fares and make them rational and reasonable.
18/07/12 Economic Times

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Categories: Indian Aviation- In General Jul 2012