As airlines were accused of creating a cartel to withdraw their low-end air fares, MRTPC on Thursday asked its
investigation wing to probe the "sudden" fare hike and DGCA directed all airlines to justify their "simultaneous" decision to raise ticket prices.
The anti-monopoly watchdog Monopolies and Restrictive Trade Practices Commission (MRTPC) asked its investigation wing to probe the "sudden" hike in airfares and withdrawal of promotional fares by airlines "in unison" and submit a report within 60 days.
Sources in MRTPC said the decision of airlines would reduce choice and availability to the consumers and also reduce competition in the aviation sector.
The Directorate General of Civil Aviation (DGCA) also shot off letters to all domestic carriers seeking information regarding the recent hike and transparency in airfare advertising, saying it should be furnished by Saturday.
The developments came after civil aviation minister Praful Patel warned of action against any move towards cartelization. "We will keep a watch and take strict action in any such case," Patel, who had earlier asked the carriers to reduce airfares after a fall in jet fuel prices, said.
DGCA said it felt that "there appeared to be no rationale for increasing the airfares", as current jet fuel prices were at the same level as in 2005.
In a letter, DGCA said the airfares displayed on the airline websites "loosely labelled" fuel surcharge and congestion charge as taxes. It asked all airlines to display "one composite fare, correctly indicating the charges accruing to the airlines".
Meanwhile, major carriers said that price fixation on their part was done in accordance with the demand and the competitive environment.
An Air India spokesperson said the flag carrier "does not and will not participate in any price-fixation attempt or mechanism aimed at building a cartel".
"The recent changes in fares on domestic routes were undertaken by Air India solely in response to the changed market situation and did not occur simultaneously with the increase in fares by other carriers," he said.
A Jet Airways official said they followed dynamic pricing and adjusted fares on a regular basis depending on the market conditions and revenue management practices.
Similarly, a spokesperson of the UB Group, which owns Kingfisher Airlines, said there was no question of cartelization when every airline was "fighting for a share of a declining pie".
CEO of low-cost carrier GoAir Edgardo Badiali said the airline industry was experiencing a "combative fare war over the last few weeks".
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