Iata Agents Association of India v. Federation of Indian Airlines & Ors.
Case brief
What is this about?
The Competition Commission addressed an information alleging cartels and abuse of dominant position by major airlines regarding the reduction of travel agent commissions. The Commission found no concerted action or dominant position.
What did the court decide?
Matter closed as no prima facie case exists; Section 33 application disposed of accordingly.
What the court decided
COMPETITION COMMISSION OF INDIA
Case No. 35/2012
Date: 07/11/2012
IATA Agents Association of India
Informant
Vs
Federation of Indian Airlines and others Opposite Parties
ORDER UNDER SECTION26 (2) OF THE COMPETITION ACT, 2002
The information in the instant case has been filed by IATA Agents Association of India (“the informant”) u/s 19 (1) (a) of the Act against Federation of Indian Airlines, M/S Air India Ltd, Jet Airways (India) Ltd. & M/S Gulf Air (“Opposite Parties”) alleging contravention of sections 3 & 4 of the Competition Act 2002 (“the Act”).
2 . As per the information, the members of the informant IATA were accredited travel agents all over India and engaged in the sale of air tickets relating to air travel both domestic and international. OP No. 1 was an apex body of air lines in India, formed by the Full Service Carriers (FSC) & Low Cost Carriers (LCC). OP No. 2 & 3 were its members among FSC. Apart from these two, there were other members including Indian Airlines and King Fisher Airlines Ltd as FSC. The airlines being the members of the OP No. 1 among FSC were paying Commission to the members of the informant and all other recognized travel agents at the rate of 3 % average on the sale of tickets by them. It was
Issues for consideration
3 issues framed by the court
Whether the reduction of commission by multiple airline operators constitutes a cartel under Section 3 of the Competition Act, 2002.
Whether the airline operators hold a dominant position under Section 4 of the Competition Act, 2002.
Whether Information filed under Section 19(1)(a) discloses a prima facie case requiring investigation.
Parties & counsel
- petitioner
IATA Agents Association of India
- respondent
Federation of Indian Airlines
- respondent
Air India Ltd
- respondent
Jet Airways (India) Ltd
- respondent
Gulf Air
Case details
As recorded by the court registry
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