MRP on air fares would be anti-competition: CCI

"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 Competition Commission of India (CCI) said in an order released on Thursday.

The order was passed following a complaint against the Directorate General of Civil Aviation (DGCA) and the Ministry of Civil Aviation, wherein they were accused of not having evolved a pricing policy of air tickets like Railways and State Transport Corporations so as to fix MRP of airfares to be charged from passengers by various airlines.

Disposing off the complaint, CCI said the complaint does not raise any competition issues and "it is only when demand is more and supply is less that the airlines venture to increase the air fares."

"The Commission can neither go into the issue of MRP, that is what should be the MRP for any product or service and fix the MRP, nor the Commission can give direction to the Government of India that it should fix MRP of a service being provided by private entrepreneur.

"In fact that will be contrary to the spirit of competition law," the order said.

CCI said the complainant had made general allegations

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