CCI orders inquiry into rise in airfares

Taking action on its own initiative, the Competition Commission of India (CCI) today asked its investigation wing to inquire into the possible cartel-like behaviour in fare rises by airlines.

“Director General-Investigation has been given 60 days to complete the probe into fare hike by airlines,” an official of the competition watchdog said.

The Commission has also asked the Ministry of Civil Aviation to share information about the fare increase with the watchdog, sources said, adding the investigations would be conducted under Section 26 of the CCI Act.

Section 26 empowers the Commission to order an inquiry by the Director General if it felt a prime facie case existed for the violation of the Competition Law.

The suo motu action, sources said, followed media reports and the statements issued by Civil Aviation Minister Praful Patel on steep rise in fares in the non-peak season last month.

The overall airfare levels, particularly spot or last-minute fares, had shot up several-fold even when the demand for air travel was not high.

However, they came down by 20-25 per cent after the Directorate General of Civil Aviation and the ministry warned the airlines of severe action under the Aircraft Rules.

Earlier, the Civil Aviation Economic Advisory Council had set up a working group to suggest measures to protect consumer interests, including ensuring transparency in airfares.