Airlines under CCI’s scanner

New Delhi, Nov. 1: The Competition Commission is looking at algorithms used by airlines to determine fares, as part of a detailed probe into alleged fixing of air ticket prices, according to its chief Sudhir Mital.

Currently, the fair trade regulator is investigating allegations of similar pricing as well as simultaneous increase in ticket prices by the airlines. The cases pertain to steep fluctuations in airfares during the Jat agitation in Haryana and floods in Chennai, among other instances, in the last few years.

Mr Mital, chairperson of the Competition Commission of India (CCI), said that it is currently looking into couple of cases of alleged price fixing by airlines. “We are trying to work out the pricing pattern followed by airlines. Airlines have often stated that similarity in airfares as well as increase in prices is an outcome of demand based dynamic pricing by the softwares used by them.

“Unless and until the issue is examined and looked into in detail, we cannot say much at this stage,” Mr Mital told PTI.

There have been instances of spike in air ticket prices during festivals and natural calamities. Earlier this year, some Rajya Sabha members sought a cap on airfares and the government has been maintaining that fares are deregulated. The CCI chief said the cases being looked at involve allegations of similar pricing by airlines during the Jat agitation and floods in Chennai.

While the Jat agitation took place in early 2016, the floods occurred in 2015. “Basically, one case being looked into is about similarity in prices of different airlines for the same route that customer often comes across while booking tickets and the other is about surge pricing, for example, how is that during Jat agitation all airlines on the same day decided to increase the prices,” Mital said.