MRTPC orders probe into Jet-Kingfisher alliance

New Delhi: The high-profile alliance between Kingfisher Airlines and Jet Airways may have flown into some turbulence, with the Monopolies and Restrictive Trade Practices Commission (MRTPC) on Friday asking its investigative arm, the Director-General of Investigation and Registration (DGIR), to probe the operational agreement between the two private carriers.
On Monday, the two airlines had entered into an alliance the scope of which includes code-sharing on both international and domestic flights apart from looking at joint network rationalisation. The alliance will also look at a joint fuel management strategy so as to reduce expenses, apart from working on cross-selling flight inventory.
The alliance partners claimed that several of the initiatives being proposed under the alliance, including operating code-share flights, will begin only after it is approved by the Directorate General of Civil Aviation (DGCA). While maintaining their separate legal entities and brand entities, both Jet and Kingfisher will examine co-branding opportunities.
According to sources, the MRTPC has asked DGIR to file its preliminary report on the investigation in 60 days. “The DGIR would examine whether the alliance could result in a monopoly or a restrictive business practice, and also from the point of cartelisation. The DGIR would take cognisance of the agreement, which could lead to nearly 60 per cent of market share being handled by the two carriers,” sources pointed out.
17/10/08 Business Line

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Categories: Jet Airways Oct 2008, Kingfisher Oct 2008