Probe ordered into 'cartelisation' by airlines

test sharma | Updated: May 10, 2011, 7:08 PM IST

New Delhi: Competition watchdog CCI has found prima-facie evidence of cartelisation by private airlines to take advantage of strike by pilots of national carrier Air India.

"The CCI has prima-facie found evidence of anti-competitive agreement by private airlines in jacking up prices. An investigation has been ordered to look into the matter," a source said, adding that "the Director General
(Investigation) has been asked to look into the allegations and give report within 60 days".

About 800 pilots, belonging to the erstwhile Indian Airlines, had gone on strike between April 27 and May 6 demanding, among other things, pay parity with their Air India counterparts.

The 10-day strike saw disruptions in the services of the national carrier.

"The CCI has called private airlines on May 13 to pass an interim order. The interim order would ask private airlines to immediately stop opportunistic pricing of tickets," the source said.

According to the preliminary findings, the airlines have been found to have formed a cartel to decide ticket prices during the period when Air India pilots went on a strike.

First Published: May 10, 2011, 7:08 PM IST

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