Why Modi government is asking airlines to share fare data
What's the story
The Indian government has requested major airlines, including IndiGo, Air India, SpiceJet, and Akasa, to provide data on average fares charged. The request comes as part of an investigation by the Competition Commission of India (CCI) into unprecedented travel disruptions in December. The disruptions were mainly due to pilot shortages at IndiGo, which holds a 65% share in India's aviation market.
Crisis impact
IndiGo's flight cancellations and fare surges
The pilot shortages led IndiGo to cancel some 4,500 flights in December, leaving thousands of passengers stranded and disrupting air travel across the country. During this crisis, fares for certain airlines shot up, prompting the government to impose temporary caps. The CCI is now probing whether IndiGo abused its dominant market position during this period of disruption.
Data request
Airlines asked to provide fare data for specific period
The Directorate General of Civil Aviation (DGCA), which is responsible for safety oversight, has written to the airlines. It has sought average fares on each route they operated on, for economy and premium economy seats, between December 1-15. The request was made at the CCI's behest and is aimed at assessing airfare patterns across airlines during these disruptions.
Investigation
CCI looking at another case too
The CCI is also looking into a complaint that alleges IndiGo canceled flights and then offered seats at much higher prices. This, if proven, could be seen as abuse of its dominant market position.