CCI revives probe of Jet-Kingfisher deal

India’s competition watchdog has revived an investigation that seeks to examine whether the strategic alliance struck between Kingfisher Airlines Ltd and Jet Airways (India) Ltd in 2008 is a case of cartelization.
The Competition Commission of India (CCI) had started its inquiry last year based on a consumer complaint.
The two airlines cooperate in areas such as fuel management, ground handling and cross-selling of flight tickets to select destinations. The present share of the two airlines in domestic passenger traffic is around 45%.
If CCI does detect cartelization, it can impose a maximum fine amounting to three times the profit or 10% of the individual turnover of the companies for the period of cartelization.
“CCI has decided to restart investigating into the issue of possible cartelization in the case of Kingfisher and Jet Airways which entered into an alliance in end-2008,” said a senior official at CCI who did not want to be identified. Independently, another official confirmed CCI’s action.
CCI had started the inquiry in August 2009, but suspended it after Kingfisher moved the Bombay high court against the investigation.
09/06/10 Sangeeta Singh & Tarun Shukla/Live Mint

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Categories: Jet Airways Jun 2010, Kingfisher Jun 2010