CCI Probes Sharp Fluctuations In Airfares

Amid sharp fluctuations in airfares, the Competition Commission of India (CCI) is once again probing whether cartelisation among airliners is increasing ticket prices. The CCI has the mandate to keep a tab on unfair trade practices at market place.

It has started probing the matter after getting a reference from a Parliamentary panel.

According to a source close to the development, CCI is investigating the movement of airfares to check whether there are anti-competitive practices involved.
It could not be immediately ascertained when the commission began its fresh probe into the matter.

The fair trade watchdog had looked into the matter of airfares movement in the past, but could not find evidence of cartelisation then.

Earlier, the CCI had found that air ticket prices were following the forces of demand and supply. Since January this year, SpiceJet, a low-cost domestic airline, had initiated a fare war on several occasions. This has forced other carriers to follow suit by frequently providing steep discounts in advance purchase of tickets.

This was apparently done keeping in mind the competition from the new airline, AirAsia India, which has been promising tickets that will be 35% cheaper than the existing rates. AirAsia has launched its operations on June 12.