Even as the country’s fair-trade regulator Competition Commission of India (CCI)’s notice to Air India over the ongoing process to merge Vistara with itself has caused a considerable flutter, legal experts feel that it may not have any negative bearing on the process.
“With such a large-scale merger happening, it is fairly common and natural for the CCI to take this to the next level of scrutiny,” Nitin Sarin, managing partner Sarin & Co., told Business Today.
At best, the notice may only slightly prolong the merger of the two full-service carriers (FSCs) under Tata group ownership.
“But it is fairly certain that being [run by] experienced professionals, both Air India and Vistara would have already factored this in,” added Sarin.
Media reports quoting sources had said the CCI had sought an explanation from the national flag carrier on why an investigation into its merger with Vistara should not be conducted. However, a CCI official told BT that the reports were “highly speculative”.
Air India has been given 30 days to reply to the notice.
While the regulatory process of the merger had been initiated in December 2022, the approval of the merger was filed before the CCI by Air India only in April 2023.
“In light of the same, the CCI has called upon Air India to furnish cogent and convincing reasons as to why the merger between Air India and Vistara will not hurt competition in the Indian aviation sector,” observed Suvigya Awasthy, associate partner at PSL Advocates & Solicitors.
28/06/2023 Manish Pant/Business Today
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