Emphasising that movement of airfares are determined by supply and demand,Competition Commission today said that at present it has no reasons to intervene in the issue of ticket prices fixed by airlines.
The fair trade regulators comments comes against the backdrop of many airlines recently slashing airfares to attract more passengers.
When asked about airfares movement,Competition Commission of India (CCI) chairman Ashok Chawla said this was something that is determined by the market.
… As far as we (CCI) are concerned,as on today,there is no reason perhaps to intervene, he told reporters on the sidelines of a conference organised by industry body Assocham.
According to him,the CCI had looked into the issue of airfares. Our finding was that the upward or downtrends in passenger fares is due to demand and supply. We have not found any evidence of any combined action or cartelisation by airlines. Our assessment is the market is functioning as it should…, he noted.
Earlier this week,CCI had ruled that government or the aviation regulator cannot be asked to cap the flight ticket prices as that would go against the spirit of competition in the sector.
Today,the forces of demand and supply govern the air fares. Whenever supply is more and demand is less,air fares fall and in lean season the airlines do decrease air fares, the regulator said in an order on March 14.
CCI to soon probe alleged cartelisation in petrol pricing
The Competition Commission of India (CCI) will very soon finalise the probe into alleged cartelisation among oil marketing companies in fixing petrol prices.
CCI chairman Ashok Chawla has said the regulator was in the process of finalising the probe against oil marketing companies with regard to alleged cartelisation in fixing prices of petrol.
We are in the process of sending them an order which will ensure that there is investigation to see what is happening in terms of petrol prices, he told reporters here.
Meanwhile,Chawla said the CCI is probing about 26 cases for alleged anti-competitive issues as complaints of unfair market practices show a rise. About 25-26 case are currently under the investigation of the Director General, Chawla said. DG is the investigating arm of the fair trade regulator.