Jet Airways, JetLite under MRTPC lens

New Delhi: The Monopolies and Restrictive Trade Practices Commission (MRTPC) has initiated investigations into the Naresh Goyal-owned Jet Airways and its low-cost subsidiary JetLite over cartelisation concerns. The two airlines announced a code-sharing agreement and back-end synergies last month. The commission is already investigating the high-profile alliance between Jet Airways and Kingfisher Airlines after they signed a similar code-sharing agreement in September to see whether the formation of an alliance would lead to a monopoly in the aviation business.
A senior MRTPC official said: “We have taken into account the recent development as both Jet Airways and JetLite are operating separately. The investigation has been ordered to look into the details of the code-share agreement between these airlines and see whether it violates any provision of the MRTP Act, including unfair trade practices as well as cartelisation in the aviation industry.”
A questionnaire mailed to Jet Airways on the issue went unanswered and senior officials could not be reached for comments. Under the code-share agreement announced on October 21, both carriers had planned to leverage their respective networks and offer higher connectivity in more than 50 domestic and international markets.
21/11/08 21 Chanchal Pal Chauhan/Economic Times

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Categories: Jet Airways Nov 2008, JetLite Nov 2008