The Interface Between Air Transportation and Competition Law

The history of civil aviation in India began in December 1912, with the opening of the first domestic air route between Karachi and Delhi. Thereafter, air travel remains a large and growing industry. It facilitates economic growth, world trade, international investment and tourism and is therefore central to the globalization taking place in many other industries. As the economies of developing countries grow, their own citizens are already becoming the new international tourists of the future. The more rise in demand for the air services, the more is the supply. The urge to provide more better and better services with the zeal of high profit inducing market players join the regime of Airline Industry. The Competition Act was part of the process of reform to ensure that Indian markets are competitive and that the benefits of competition go to consumer welfare and economic efficiency. To ensure that the benefits do go to the right channels the two pre-requisites are the Competition Policy and Competition Law. Competition Policy advocates that the government policy should be to shed controls and restrictions, avoid barriers to entry and should be pro-competition.