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Saturday, June 12, 2010, 18:00 Hrs  [IST]

TAAI files complaint to CCI against airlines following zero commission regime

DGCA supports TAAI’s plaint on zero commission regime

The Travel Agents Association of India (TAAI) recently filed a complaint with Competition Commission of India (CCI), with reference to the zero commission issue, claiming that the action of all the airline to go to zero simultaneously was an act of cartelisation and monopolistic in nature which was against fair business practices and hence illegal. The airlines have misused their dominant position to have an appreciable and adverse effect on competition.
 
CCI, is the apex body under the Competition Act, 2002 which has been vested with the responsibility of eliminating practices having adverse effect on competition, promoting and sustaining competition, protecting the interest of consumers and ensuring freedom of trade carried on by other participants in India and is the successor to the MRTP Commission. The raison d'etre of the Competition Act is to create an environment conducive to competition.
 
As per TAAI release, to evaluate the association’s petition the CCI had sought the opinion of the Directorate General of Civil Aviation (DGCA) asking them whether they are in agreement with TAAI’s petition.


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