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

Will put an end to corruption, VIP culture in railways: Lohani

 Former Air India chief Ashwani Lohani on Thursday took the charge as Chairman Railway Board and said his main thrust would be to put an end to corruption and VIP culture. Lohani told mediapersons that it was an emotional moment for him to join back the railways as its CRB.  He said saf

Can Trump rein in Pakistan?

Pakistani leaders must be feeling frustrated after US president Donald Trump warned Islamabad that America would not remain a silent spectator if Pakistan continued to be a safe haven for terrorists. Secretary of State Rex Tillerson also said Pakistan could lose the privilege of being a US ally if it &ldqu

Privacy a fundamental right: SC

 A nine judge constitutional bench of the Supreme Court has unanimously upheld that privacy is a fundamental right protected under the constitution.  The judges have upheld that privacy is protected under constitution’s Article 21 and Part 3, which deal with fundamental rights.

People of the woods

Incense sticks were lit. Ram Sahay Marawi, 70, was ready to break the coconut over the ground – an auspicious ritual before starting anything new. He along with fellow tribal villagers was worshipping grass seed balls that they had prepared mixing grass seeds in the mud. Everyone around waited for Ma

Lohani is new chairman of railway board

Air India CMD Ashwani Lohani was appointed the Chairman of Railway Board on Wednesday after incumbent AK Mital put in his papers. Mital tendered his resignation to railway minister Suresh Prabhu following two derailments in Uttar Pradesh.   Lohani, a 1980-batch office

Land swap proposal between AAI and MMRDA approved

 The government on Wednesday gave its approval for transfer of 40 acres of Airports Authority of India’s (AAI) land at Dahisar to Mumbai Metropolitan Region Development Authority (MMRDA) for its metro shed, swapping with 40 acres of Maharashtra government land at Gorai in Mumbai.  



Video

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter