Tuesday, May 07, 2013

Competition Commission of India to examine Jet-Etihad deal

New Delhi:  Abu Dhabi-based Etihad's decision to buy 24% stake in Jet Airways for $379 million has come under the Competition Commission of India's (CCI) scanner.
The watchdog, whose job is to ensure a level playing field for all players in any sector, will see if this deal will mean Etihad getting substantive control in Jet and, if so, its impact on other airlines.
"We will examine the Jet-Etihad agreement," confirmed CCI chairman Ashok Chawla, a former aviation and finance secretary. The government has allowed foreign airlines to have up to 49% stake in Indian carriers.
The commission is going to examine if the deal tilts the scales in Jet's favour, to the detriment of other airlines. Air India has already opposed the liberal grant of bilateral to Abu Dhabi, something which was seen as the deal clincher.
07/05/13 Saurabh Sinha/Times of India