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India: CCI takes another swing at airfares

By  |  June 16, 2014

The Competition Commission of India has reportedly launched in inquiry into the nation’s airfare costs following sharp hikes and dips in prices.

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    The CCI has previously probed plane ticket costs to examine whether cartel behavior is leading to higher prices, but has not found evidence of collusion. Now, a source said the regulator is again looking at the industry following a reference from Parliament to do so.

    While earlier investigations into the matter lead the CCI to find that airfare prices accurately reflected supply and demand trends, this year has seen greater fluctuations in costs. Reports say Spicejet first launched a price war against its competitors following the entry into the market by AirAsia India. AirAsia first began operations last week and had increased hype regarding its launch by promising tickets at 35 cents cheaper than rival rates.

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