CCI rejects complaints of cartelisation against private airlines

NEW DELHI: Dismissing complaints against private airlines, competition watchdog CCI on Friday said they did not indulge in anti-competitive practices by raising fares after Air India pilots went on strike in April-May last year.

In a 24-page order, the Competition Commission of India (CCI) observed that like in any peak season, during April and May 2011 load factor on airlines had increased and in line with this trend, the percentage of tickets sold in the higher buckets of all the airlines had also gone up.

“To this extent, it may be said that there was a pattern in air fares going upwards together during the strike period and in general also during the period of high demand, fares of all airlines tend to move together.”

“However, based on available evidence, the Commission holds that it cannot be concluded that the airlines had been carrying on any anticompetitive practice in violation of section 3(3) of the (Competition) Act,” the CCI said. Section 3 of the Act pertains to anti-competitive agreements by enterprises.

During the course of proceedings, CCI said it has also considered the Directorate General of Civil Aviation’s (DGCA’s) submission that increase in air fare was due to peak traffic season coupled with reduced capacities as a result of strike by Air India pilots. The corporate affairs ministry had sent a reference in this regard to the CCI on May 6, 2011.