Air fare, petrol cartelisation: CCI waits for info before taking call

Written by fe Bureau | New Delhi | Updated: Nov 30 2012, 09:41am hrs
The Competition Commission of India (CCI) said on Thursday it will take a decision on whether to probe alleged cartelisation among airlines in fixing air fares after getting more information on the issue. CCI has also sought information from the petroleum ministry on alleged oil price carterlisation.

CCI chairman Ashok Chawla said: We have asked the petroleum ministry to give us information on the way the sector works and how all of them arrive at similar prices. We are awaiting their response.

On the issue of cartelisation in air fares, as alleged by Captain Gopinath, former head of Air Deccan and the pioneer of low-cost airlines in the country, Chawla said: The commission has taken note of the statement. So, we have asked him to share whatever information he has... He has asked for a meeting (with me). We are awaiting further inputs from him before we look into the matter.

In recent times, the fair trade regulator has imposed penalties on some industry associations, such as cement, pharmaceutical, LPG cylinders and film producers associations. It has also dismissed cases brought forward by tyre associations, among others.

Commenting on the current competition law, Chawla said they are reasonably robust and quite aggressive.

CCI to meet trade bodies, CEOs to resolve issues

Come December, the Competition Commission of India (CCI) is set to start a big drive to create awareness about the competition laws and the anti-competitive practices prevalent in both private and public sectors.

The CCI will first call a meeting of major trade associations, followed by a meeting with top 100 CEOs of companies from both private and public sectors, based on turnover.

According to Ashok Chawla, chairman, CCI, officials from both private and public sector entities would be invited for the meeting, which is scheduled for January next year. Chawla said that efforts are under way for more advocacy and communication related to competition laws.