Jet, Kingfisher pact faces cartel check

The code-sharing agreement between Jet Airways and Kingfisher, the country’s largest private carriers, may be in for some turbulent weather.
The industry watchdog, the Competition Commission of India, has begun an investigation into the agreement to check if there is a “possible cartel- like behaviour”, one of its senior officials, who did not want to be named, told Financial Chronicle. He said the directorate- general of civil aviation too was looking into it.
The probe comes after a consumer filed a complaint against the agreement in July. His name was not revealed by the commission official. The complainant has alleged that once the agreement becomes fully operational, the two airlines could form a “monopoly, virtually killing all kinds of competition in the aviation sector” .
According to the commission official, the case has now been forwarded to the deputy director-general of civil aviation who is investigating it. The commission called a meeting about 10 days ago to look into the complaint.
K K Sharma, the commission’s deputy director-general, refused to comment. A Jet Airways spokesperson said she was not aware of such an investigation.
Financial Chronicle repeatedly called the Kingfisher spokesperson on the phone on Thursday afternoon. He did not take the calls. At 8.45 p m he called Financial Chronicle up to say he was not aware of the case before the commission and wanted time to check with his company’s legal department.
20/08/09 Ronojoy Banerjee and Parul Chhaparia/mydigitalfc.com

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Categories: Jet Airways Aug 2009, Kingfisher Aug 2009