Fair trade regulator CCI is examining whether there has been cartelisation in steep fluctuation of airfares, including at the time of Jat agitation earlier this year.
Corporate Affairs Ministry has submitted to the Parliamentary Standing on Finance that Competition Commission of India (CCI) is looking into the issue of airlines allegedly charging exorbitant fares during the recent agitation in Haryana.
In its report tabled in Parliament today, the panel said CCI is "examining the issues of exorbitant airfares and possible cartelisation by gathering information from airlines and conducting investigations".
In their submission to the ministry, CCI said it took immediate action on the issue and called a special meeting, wherein it was decided to seek for information from airlines to form a view whether such a hike in airfares was on account of anti-competitive behaviour such as cartelisation by airlines.
"The reason for such hike in airfares as well as other information has been sought from five airlines...While some have filed responses, others have sought time to reply. Reminder letters have been sent to airlines to file reply," Competition Commission said in its submission.
While noting the action taken by CCI, the committee re-emphasise that the Commission should expedite their investigations in cases of abnormal price hikes and possible cartelisation and conclude their findings in a time-bound manner.
CCI is empowered to examine anti-competitive conduct and intervene in cases of cartelisation, price parallellism and abuse of dominance.
