CCI may question finmin directive favouring AI

New Delhi: Autonomous regulatory body Competition Commission of India (CCI) may question a recent finance ministry directive asking government officials to fly only by Air India, a step taken as part of a larger effort to rescue the company which is in a deep financial crisis.
CCI member R Prasad told SundayET that the ministry's decision demonstrated an anti-competition behaviour.
"The commission is considering whether to send a letter to the finance ministry in this regard," he said.
The finance ministry's order which was later extended for availing Leave Travel Concession (LTC) by government employees, was a big relief to the government-owned carrier which lost Rs 5,000 cr during the last financial year. The move may help Air India earn Rs 1,000 cr annually, mainly at the cost of the private airlines.
Mr Prasad said the CCI would send a "letter" and "not a show cause notice" to the finance ministry.
He said that the CCI is mandated to question the government according to the definition of enterprise under section 2 (h) of the Competition Act. The enterprise in the Act means both a person or a department of the government. The government, however, reserves the right to supersede the Commission's order.
02/08/09 Shantanu Nandan Sharma/Economic Times

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Categories: NACIL Aug 2009