CCI gets tough, issues notice to Kingfisher-Jet

New Delhi: Government watchdog Competition Commission of India (CCI) has issued notices to the biggest domestic private airlines — Jet and Kingfisher — over the allegedly monopolistic alliance the two entered into last year. Asserting that ‘‘prima facie a case exists’’, CCI has sought details of Vijay Mallya and Naresh Goyal’s operational tie-up that could prevent a level playing field for other carriers.
According to latest DGCA figures, Jet, JetLite and Kingfisher have nearly 50% market share of domestic air traffic. ‘‘It has been alleged that the alliance may result in cartelisation, which may have an appreciable adverse affect on competition... It has further been alleged that the two airlines have a bulk market share as well as airport slots, undermining the ability of other players to compete on a level playing field and are abusing their dominant positions by coordinating increase in passengers fares, increase in fuel surcharge, charging fuel surcharge at a fixed rate irrespective of distance,’’ the CCI notice says.
27/08/09 Saurabh Sinha/Times of India

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Categories: Jet Airways Aug 2009, Kingfisher Aug 2009