Competition panel to watch big aviation M&As closely

Mumbai: The Competition Commission of India (CCI) will keep a close watch on any signs of unwarranted dominance of bigger players over smaller firms and new entrants in the aviation sector in view of the mega mergers that have happened in the segment of late.
“Merged entities have all the right to exploit their resources for a healthy competition, but in case they misuse their dominance, we will pull them up under section 3 of the Competition Act 2002,” says Amitabh Kumar, director general, CCI. Such players could also be penalised for dominating on any specific routes, he added.
Kumar was speaking in the light of the recent Jet Airways-Air Sahara and the Kingfisher-Air Deccan deals, as well as the merger of Indian Airlines with Air-India, where the combined entitites enjoy a substantial pie of the Indian aviation market. The commission, constituted under the Competition Act 2002, has become more vigilant these days, specially after a spate of mergers and acquisitions across sectors.
02/07/07 Shaheen Mansuri/Financial Express

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Categories: General Aviation Jul 2007