New Delhi: The Competition Commission of India will examine the issue of domestic airlines almost simultaneously hiking fares by 25%-30% last week. It will examine a complaint filed by Air Passengers' Association of India chief Sudhakara Reddy, which says that airlines gave the recent 7% hike in jet fuel price as the reason for price increase but 25% "cartel-like" fare hike was disproportionately higher.
"We will examine the flyers' complaint. If substance is found in it, there will be a fresh probe into the allegation of cartelization," said CCI chief Ashok Chawla, who has been secretary of both aviation and finance ministries and knows the sectors well. CCI has examined the complaint of cartelization by airlines twice in the past but did not find airlines guilty. "The market dynamics keep changing. Also there is one airline less now and we will examine the latest complaint," said an official.
Oil PSUs had last week hiked aviation turbine fuel (ATF) or jet fuel price by 7%, following which all airlines hiked fares. For a change, airlines blame themselves for the latest pricing mess.
Read News In Full 12/09/13 Saurabh Sinha/Times of India
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