No market abuse by Delhi, Mumbai airports on parking rates: CCI

NEW DELHI: Competition watchdog CCI has dismissed complaints that Delhi and Mumbai international airports abused their dominant market position with regard to vehicle parking rates charged by them.

The ruling follows a complaint filed by Citizen Grievances Redressal Foundation that had alleged that parking rates at Mumbai International Airport and Delhi International Airport were excessively high compared to those at Kolkata and Chennai airports.

In an order dated November 6 and published today, the Competition Commission of India (CCI) said: "...merely because the parking prices of opposite parties (Mumbai and Delhi airports) are higher than other airports it is not a fit case for issue of directions for causing an investigation to be made by Director General".

According to CCI, Mumbai and Delhi airports were owned and run by joint ventures formed by Airport Authority of India AAI with private parties which were free to fix rates for non-aeronautical services, including vehicle parking.

In comparison, the rates offered for both aeronautical and non-aeronautical services at Chennai and Kolkata airports are regulated and approved in advance by AAI, it said.

"In case of an airport project owned by a consortium, the earning from non-aeronautical services form a substantial part of income of the consortium and consortium is given liberty to charge for such services so as to recover the investments over a period of time and to meet overall maintenance and management of the airport," CCI said.

Moreover, the competition watchdog said that the number of passengers at Delhi and Mumbai airports was 2-3 times more than at Kolkata and Chennai and that it was a "matter of fact that parking space is always limited at big airports".

"The principle of demand and supply would come into play to discourage passengers from using parking space at airport and to promote the culture of using public transport, fixing the parking rate as per the market demand is helpful," the competition watchdog added.

"As such there does not appear to be any competition issues involved in this case," it added.

According to the complainant, while Mumbai international airport charges between Rs 100 to Rs 1000 for parking duration of 30 minutes to 24 hours, Delhi rates range from Rs 70 to Rs 900.

In comparison, Kolkata and Chennai airports charge between Rs 15 for two wheelers Rs 70 for heavy utility vehicles and Rs 60 for cars for a duration of upto four hours.