Taking suo moto action, the Competition Commission of India, CCI has asked its investigation wing to inquire into the possible cartel-like behaviour in fare hike by airlines. The CCI's Director General-Investigation has been given 60 days time to complete the probe. The CCI sources said, the Civil Aviation Ministry has also been asked to share information about the fare hike by airlines with the competition watchdog. The sources said, investigations will be conducted under Section 26 of the CCI Act. The Section 26 empowers the Commission to order an inquiry by the Director General into a matter if it feels that a prime facie case exists for violation of the Competition Law. The overall airfare levels, particularly the spot or last-minute fares, had shot up last month several folds even when the demand for air travel was not high. The fares, however, came down by 20 to 25 per cent after the Directorate General of Civil Aviation, DGCA and the ministry warned the airlines of severe action under the Aircraft Rules.
News On AIR | December 24, 2010 10:22 AM
Competition Commission of India orders probe into fare hike by airlines