Wednesday, May 08, 2013

CCI to examine Jet-Etihad deal but unlikely to throw a spanner

The Competition Commission of India will examine the stake deal between Jet Airways and Abu Dhabi’s Etihad Airways, according to a report in the Times of India today.
The deal is the first in the domestic aviation sector after the government allowed foreign airlines to pick up 49 percent in their Indian peers.
The CCI, whose Chairman Ashok Chawla was a former aviation secretary, will explore whether the deal will be detrimental to other players in the sector.
The deal has kicked up a controversy as the government’s move increasing the seat capacity in the India-Abu Dhabi sector is seen as favouring only Jet and Etihad at the cost of Air India.
Indian airlines use only about 65 percent of the existing entitlements in the sector.
08/05/13 First Post