The Indian Competition Authority orders the closure of an investigation into alleged cartelization in the airline industry because the observed price parallelism was not proven to have occurred through cartelization (Jet Airways / Indigo / Spice Jet / Go Air / Air India)

KEY POINTS Mere price parallelism does not amount to cartelization, if: (i) the market prices have fluctuated, at times with significant margins, (ii) new players are easily able to establish themselves; (iii) all players offer more or less similar kinds of services, and (iv) the prices depend on a variety of factors. BRIEF FACTS The case was initiated suo motu after CCI received a request from the Lok Sabha secretariat to examine any evidence of cartelization within the airline sector. CCI sought information from Jet Airways (including JetLite), Indigo Airlines, SpiceJet, GoAir, and Air India for four major routes viz.