MRTPC begins probe against British Airways

MUMBAI, JUNE 22: The Monopolies And Restrictive Trade Practices Commission MRTPC has slapped a Notice of Enquiry against British Airways...

MUMBAI, JUNE 22: The Monopolies And Restrictive Trade Practices Commission MRTPC has slapped a Notice of Enquiry against British Airways following a complaint lodged by Raymonds chairman Vijayapat Singhania for offloading him from a Mumbai-bound flight despite having a first class confirmed ticket.

The incident took place at the Heathrow airport when Singhania was to board a flight but was asked by the airline to sit in the business class as no seats were available in the First class. 8220;However, passengers holding British passports were allowed to board the flight even after they checked in late,8221; Singhania complained.

The MRTPC has, therefore, issued a notice of enquiry against British Airways for alleged unfair trade practices as depriving travellers after issuing confirmed first class tickets quot;tantamounts to deficiency of service.quot;

In his petition, Singhania 8212; a well-known aviator himself 8212; said British Airways informed him on several occasions that he cannot travel in first class on the London-Mumbai route despite having a confirmed status. Due to these offloadings, Singhania claimed, he lost over Aring;ldquo; 10 million as he failed to attend business meetings in Mumbai.

Singhania wrote various letters to stop such a practice in the airline and it was admitted by the airline that they overbook the premium class in order to avoid quot;fully booked but unoccupied seats.quot;

In a communication to Singhania, British Airways said the number of passengers who fail to report forms a fairly consistent pattern and can be well above 25 per cent. 8220;Thus, we have no other option but to oversell the First Class,8221; the airline wrote.

Not satisfied with the airline8217;s feeble defense, Singhania appealed to the MRTPC asking it to initiate action against the airline on the grounds of quot;restrictive trade practices as defined in Section 2 o of the MRTPC Act 1969.quot; The other grounds were: unfair trade practice, misleading behaviour, quot;discriminatory and unconstitutionalquot; as British passengers were allotted a seat, deficiency in service, and against public interest.

Story continues below this ad

MRTPC has now asked the respondent to file the reply for the notice of enquiry at least two weeks before the next date of hearing on August 8.