Flight Ticket Prices: CCI Probing Alleged Fixing Of Airfares Using Algorithm By Airlines | Bloomberg

The Competition Commission of India is looking at algorithms used by airlines to determine fares, as part of a detailed probe into alleged fixing of air ticket prices, the regulatory body’s chief Sudhir Mital said.

Currently, the fair trade regulator is investigating allegations of similar pricing as well as simultaneous increase in ticket prices by the airlines. The cases pertain to steep fluctuations in airfares during the 2016 Jat agitation in Haryana, and the 2015 floods in Chennai, among other instances in the last few years.

Mital said that CCI was looking into a couple of cases of alleged price fixing by airlines. “We are trying to work out the pricing pattern followed by airlines. Airlines have often stated that similarity in airfares as well as increase in prices is an outcome of demand based dynamic pricing by the software used by them,” he told PTI. “Unless and until the issue is examined and looked into in detail, we cannot say much at this stage.”

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Flight Ticket Prices: CCI Probing Alleged Fixing Of Airfares Using Algorithm By Airlines.