CCI finds no competition issue in Jet - Kingfisher alliance

Mumbai: The Competition Commission of India (CCI) has found no competition issue in the 2008 strategic alliance between private carriers, Jet Airways and Kingfisher Airlines, and has ordered closure of the issue. CCI had ordered a probe into the alliance in 2009. It has said in its order that “no violation of either Section 3 or Section 4 was found against Jet Airways and Kingfisher Airlines and the matter deserves to be closed”. Sections 3 and 4 of the Competition Act 2002 pertain to anti-competitive agreements and abuse of dominant position, respectively.
The CCI had ordered the probe on the basis of a complaint from a frequent flier that if such an agreement was inked, then the two airlines would dominate the market leading to cartel formation. The then proposed alliance could result in an abuse of dominance as the two would control market share of close to 60 per cent, according to a report in Business Standard. The CCI noted that such agreements have not only been made between Jet and Kingfisher but they also have similar separate arrangements with a large number of other domestic as well as international airlines and most of these have been made with Air India.
18/08/11 TravelBizMonitor

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Categories: Jet Airways Aug 2011, Kingfisher Aug 2011