Competition Commission of India

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Competition Issues in the Air Transport Sector in India

The study on “Competition Issues in the Air Transport Sector in India” was commissioned to Administrative Staff College of India, Hyderabad. The overall objective of the study was to look at the issue of competition at two levels – air transport and airports. The other objectives of the study were to provide a market overview, discuss any significant anti-competitive practices by various players and their effects, address implications of this study for Competition Policy and Law in India, and outline issues for advocacy for India’s Competition Commission. The study pointed out that there is some evidence of price parallelism. This may not be termed as price collusion. However, CCI may monitor the pricing of the dominant airlines in particular. In general, inter airport competition is limited all over the world, because of various reasons, partly because relatively few cities are served by two or more airports and also because there are economies of scale in the provision of airports. Airports around the world are subject to significant regulation and also to State ownership. Creation of new airports, expansion of airports and ensuring inter airport competition are important in preserving and promoting a competitive environment in the air transport sector.

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Page last updated on: 26/05/17

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