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India: Airlines face cartel probe

By  |  May 24, 2015

A group of MPs headed by Kirit Somaiya filed a complaint with the Competition Commission of India against the airlines over arbitrary increase in airfares and alleged cartelisation.

According to Ashok Chawla, CCI Chairman, the regulator will look into the matter to find out whether there was a cartel involved.

BJP leader Kirit Somaiya had also filed a complaint against telecom firms over their involvement in unfair business practices on issues covering issues such as net neutrality. He added that he had discussed both the matters with the CCI at length.

On the issue of arbitrary airfare increase, Chawla said, “The Commission has looked at it in the past also. We have not been able to take any action (in the past), because we could not find any evidence of truth… 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. But whether there is a cartel, we have to get to the bottom of that.”

 

Full content: FirstPost

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