Interim CCI order on Jet-Kingfisher code-sharing pact likely tomorrow

New Delhi: The Competition Commission of India (CCI) is expected to give an interim order on Tuesday in the two-year old Jet Airways-Kingfisher Airlines code sharing deal that triggered a probe into whether the deal stifled competition in the airline industry to the disadvantage of consumers.
The agreement led to the companies virtually controlling about three-fifth of the air travel market. Companies usually defend such agreements saying they enhance efficiency and lower costs. The competition regulator is expected to give the ad-interim order in a meeting where both the airlines would be represented.
As per the code-sharing agreement signed in October 2008 between Vijay Mallya-led Kingfisher Airlines and Naresh Goyal’s Jet Airways, the two airlines decided to jointly manage fuel, cross-crew use, ground handling and route rationalisation in the backdrop of rising fuel costs and mounting losses.
12/07/10 Ronojoy Banerjee/Financial Express

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Categories: Jet Airways Jul 2010, Kingfisher Jul 2010