Aviation Watch - Jet – Kingfisher alliance could invite regulatory scrutiny by the Competition Commission

Jet – Kingfisher alliance could invite regulatory scrutiny by the Competition Commission

According to competition law experts, the Jet and Kingfisher alliance may not be smooth sailing all through as some anti-competitive elements of their alliance could expose them to regulatory scrutiny. According to experts, route rationalisation which is a key aspect of the arrangement could directly impact competition in routes where both airlines have significant presence now. The arrangement gives the combine control of over 60% of the domestic civil aviation industry and even officials of the Monopolies and Restrictive Trade Practices Commission (MRTPC) have started looking into details of the alliance to seek more information about possible anti-competitive nature of some parts of the agreement. Although provisions of the competition law requiring prior approval from the competition regulator for mergers are yet to be notified, the arrangement signed recently could still come into the scrutiny. Unlike mergers, such agreements are usually examined after they come into force and the Competition Commission of India (CCI) could also look into the agreement once it gets enforcement and adjudication powers. As of now, the CCI lacks the teeth since it does not have a chairman or members and its powers have not been notified.

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Destination of the Week

Rathyatra – Puri, Orissa ( Early July )

This spectacular chariot festival celebrated for 8 days is held at the famous Jagannath Temple at Puri (Orissa).< Thousands of devotees flock to Puri during the occasion, as they believe that a glimpse of Lord Jagannath in his chariot gives salvation. Thousands of devotees pull the chariots to the Gundicha Mandir situated about 3 kms away.

Jet – Kingfisher alliance could invite regulatory scrutiny by the Competition Commission

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