1Research Scholar & Associate Prof., CCS University, MMH College, GZB
2HOD, Law Department, Meerut College, Meerut
Online published on 20 May, 2022.
Recently air passengers faced steep hike in ticket cancellation charges by the airlines. The pricing pattern of airlines has shown a range from very high prices to very low prices. While the high pricing is indicative of cartel like behavior among the air carriers, the low pricing is another anti competitive trend in the form of predatory pricing. Both these trends not only affect the market adversely barring fair competition but also leave their impact on consumers. The airlines often are seen hiking or lowering their prices from time to time. Recently they did the same thing in the matter of cancellation of tickets even when Director General Civil Aviation (hereinafter DGCA) had warned against it as cancellation charges should not be more than the ticket prices. This may also be a case of cartelization. The airlines holding grip over the market enjoy dominant position and these airlines form cartel along with their competitors to rule over the market and to maintain their monopoly. Such activities mar the competition among the airlines which prove detrimental to the consumers also. In November 2015, the Competition Commission of India imposed penalties on Jet Airways, Indigo Airlines and Spice Jet for violating the provisions of section 3(1) along with section 3(3)(a) of Competition Act 2002. CCI was concerned about unreasonable increase in cargo fright by airlines through cartel in hiking fuel surcharge which directly affect air cargo industry. Such unhealthy practices throttle economy and negate consumer's interests. Similar anti-trust issues by airlines like code sharing agreements and frequent flyer programmes also tend to restrain competition. Mergers and acquisitions along with other anti competitive practices leave their negative impact on the market and airline consumers. The paper tends to analyze the various competition related issues and practices in the airline industry in general and in air carriers in India in particular. It further focuses on legal framework for and challenges emerging from the same. The paper then seeks to explore the role of regulatory authorities in encouraging fair competition among the air carriers in India and in protecting the interests of the consumers. In the last it is followed by conclusion.
