SC refuses to stay CCI probe into Kingfisher-Jet Airways alliance

New Delhi: The Supreme Court on Friday refused to stay the Competition Commission of India’s order that directed probe into Vijay Mallya-promoted Kingfisher Airlines’ strategic alliance with Jet Airways.
The commission had in August 2009 restarted the investigations to examine the two-year-old alliance between the two leading private airlines as it felt the code-sharing and ground handling agreement would create a monopoly in the aviation industry.
A bench headed by Chief Justice SH Kapadia while refusing to stay the Bombay High Court judgment that dismissed Kingfisher’s plea said that it was analysing the Competition Commission Act, particularly the issue whether the CCI’s powers to initiate investigations at the showcause notice stage can be challenged. It said that the court would lay norms for such an investigation and the Kingfisher’s petition will be taken up after it pronounced its decision on another similar issue.
It may be noted that the Bench on Thursday reserved judgment on a petition filed by CCI alleging that its appellate body, Competition Appellate Tribunal, was overstepping its power by staying an probe initiated into an alleged “cartel-like arrangement” between SAIL and the Indian Railways.
31/07/10 Indu Bhan/Financial Express

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Categories: Jet Airways Jul 2010, Kingfisher Jul 2010