Probe into air fare hike and cartelization

Competition commission to initiate investigation after MPs sumbit fresh complaint

GN Staff | May 22, 2015


#airlines   #fares   #Competition Commission   #cartelization   #IndiGo   #Jet   #Air India   #SpiceJet   #GoAir  

With few players in the aviation sector there are bound to be charges of cartelization, especially in terms of fares. The Competition Commission of India (CCI) has again taken up the issue of cartelisation and arbitrary hike in fares by commercial airlines.

The mandate of the CCI is to keep a watch on unfair business practices. It goes for investigation only if there is prima-facie evidence of a violation of competition norms.

The CCI has looked into the matter in the past also, but it could not take any action as there was no evidence. However, it decided to begin fresh probe as a group of MPs, led by Bharatiya Janata Party leader Kirit Somaiya, on Thursday lodging a complaint with the CCI against the airlines
.
"Prices may go up and down based on demand and supply. They go up abroad (routes) also. Friday evening it will be high, Saturday morning it will be low... That is ok if that is market-driven," CCI chairman Ashok Chawla  has said.

"But whether there is a cartel, we have to get to the bottom of that." The CCI chairman further stated that there is no doubt that the market is getting concentrated. There are only three or four players-IndiGo, Jet, Air India and SpiceJet-while GoAir is a marginal player ... So basically, only four or five players are there. We need to watch closely," he said.

Meanwhile, Somaiya  has also submitted a complaint against mobile companies alleging that they are indulging in unfair trade practices on issues like net neutrality.

"On both the issues, the Competition Commission chairman has assured me that they will go through (the matter) and take necessary action if required," Somaiya informed.  The Mumbai MP has submitted details relating to some companies in the airline and telecom sectors to corroborate his complaints.

Budget airlines to shift to T3 in Delhi

The new budget airlines will be operating from the T3 terminal of the Indira Gandhi International Airport in Delhi. They have been asked to shift to luxury terminal for flying in and out of Delhi due to congestion at the terminal 1D.

AirAsia, which started its operation from Delhi on Thursday, has been allotted space at the T3 terminal. Air Asia India Pvt. Ltd (AAIPL), a joint venture of Tata sons and Malaysian LCC Air Asia becomes the first Indian LCC to operate domestic flights from T3.
 

Comments

 

Other News

How Antyodaya Saral is simplifying everyday life in Haryana

From obtaining an electricity connection to a driver`s licence, ration card, or old-age allowance, delivery of government schemes and services is an aspect of governance that impacts citizens at various points throughout their lives. The Haryana state government provides over 600 such schemes and services.

A blueprint of India’s economic future: From a former RBI governor

From Dependence to Self-Reliance: Mapping India’s Rise as a Global Superpower By Bimal Jalan Rupa Publications, 184 pages, Rs 695 Bimal Jalan, a former governor of the Reserve Bank of India (RBI), has been one of our finest commentators on econom

Carbon neutrality: distant dream or a possible future?

While many countries have been chasing to reach the carbon neutral status, only a few seem to be living up to their pledges as of now. The famous ’Paris Agreement’ of 2015 was glorified and celebrated that finally 196 countries have united with an intent to mitigate and reduce the greenhouse ga

Agnipath: benefits and challenges on the path ahead

The government this week announced the Tour of Duty or `Agnipath` scheme for the recruitment of soldiers in the armed forces. Under this scheme new soldiers will be recruited only for four years. This radical and far-reaching scheme has attracted mixed reactions from various quarters. While some officials

Connecting credit card with UPI: What it means for you

UPI has become an integral part of our daily lives now. We use it to buy groceries, we use it to send money to friends and family, we use it to purchase tickets, book shows, pay the cab driver, and a whole host of other things due to the ease and availability of such a platform at our fingertips. The best

Gandhi’s letters to his youngest son also hold his aspirations for nation

Scorching Love: Letters from Mohandas Karamchand Gandhi to his son, Devadas By Gopalkrishna Gandhi and Tridip Suhrud Oxford University Press, 528 page, Rs 1495 Gandhi’s era happened to be an era when letter-writing was a primary mode of communica

Visionary Talk: Sanjay Pandey, Mumbai Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter