Airlines face cartelisation investigation by CCI

The Competition Commission of India (CCI) has decided to look into allegations of cartelisation and arbitrary hike in fares by commercial airlines.

The step comes in the wake of a group of MPs, led by Bharatiya Janata Party leader Kirit Somaiya, on Thursday lodging a fresh complaint with the CCI against the airlines. CCI chairman Ashok Chawla said that the regulator needs to get to the bottom of the issue to ascertain whether there is a cartel at play. The CCI has looked into the matter in the past also, but it could not take any action as there was no evidence although there is no doubt that the market was getting concentrated among a few players, he added.

"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," Chawla explained.

"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 added.

Somaiya, who also submitted a complaint against mobile companies alleging that they are indulging in unfair trade practices on issues like Net neutrality, said that he discussed both the issues in detail with the CCI.

"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 told journalists after his meeting with Chawla.