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Emerging Anti Competitive Issues In Aviation Sector

Big Data is reshaping the business. This is particularly in the case of the aviation industry. The data which is collected in the aviation industry are relating to weather forecast customer service data, ticketing information, and airport communication.

Airlines arguably generate more customer data than any other industry. Within the information lies enormous quantities of valuable intelligence that impact operational efficiency and service and leveraging into such big data can give airlines a huge advantage over the competition. here are certain cases where a major player of the airline industry is using big data to the fullest advantages i.e., United Airlines uses their collect detect act protocol to analyze 150 variables in each customer profile.

This analysis includes everything of customer preference in order to generate a tailor-made offer, by using this protocol United Airlines increased the revenue by 15%. Similarly, British Airway uses an intelligent know me feature to provide personalized search results to its customers.

In The same line, Easy jet Airline invested in an artificial intelligence algorithm that determines seat pricing automatically depending on demand. American Airline Delta has developed an app to track their bags and this app has been downloaded over 11 million times by the customer globally. By leveraging such big data, the airline industry develops its operation and marketing strategy insisting they stand out in a competitive market.

Apart from the pro-competitive behavior of big data, there are certain administrative arrangements and carrier strategies that limit the competition in the given market. There is a fear in the mind of antitrust authorities that big data can create a barrier to entry and market power, especially where the company holds a unique database that cannot be replicated by competitors, on a closer look big data-related theories of harm it is suggested that focus on uniqueness may be misplaced. The EU study found 5 types of conduct that may give an effect to antitrust issues to big data, i.e., discriminatory access, exclusive contract, tied sales, cross usage, and discriminatory pricing.

It can be presumed that in the future Indian Airline industry which is a high stream market may enter into an exclusive arrangement or network arrangement with downstream market i.e. the company engaged in providing hospitality, entertainment, and insurance of in-flight passengers, may infringe anti-competitive law if they prevent rivals from accessing data and foreclose rival opportunities to procure similar data.

It can be further presumed that tying sales or cross usage of big data i.e., use of data collected on a given market in another market can have a foreclosing effect. The commission must look into such cases where an undertaking is dominant in the tying market, the tying market and the tied product are distinct products and the tying practice may lead to anti-competitive foreclosure. For example, indigo Airline tie-up with an XYZ insurance company for providing life insurance which is two distinct products.

In the EU court of justice's Microsoft IIMS and Bronner judgment, it states that exclusive contract and network of contracts to procure data could potentially have foreclosed effect on rivals.

In Big data-related issue competition, authorities will need to look more closely at the substitutability of different types of data for different purposes and factors such as the availability of algorithms or other software to process such data. The High stream market that possesses big data may in the future create a barrier to entry or contribute to the abuse of dominance position.

Award Winning Article Is Written By: Mr.Rahul Barik
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Authentication No: SP124615185955-03-0921

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