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| Code sharing pact between Jet, Kingfisher under CCI scanner |
| Press Trust of India / New Delhi Aug 21, 2009, 20:44 IST |
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The proposed code-sharing agreement between private airlines Jet Airways and Kingfisher has come under the lens of Competition Commission of India (CCI) as a complaint has been filed with the competition watchdog saying the pact could lead to formation of cartel.
A frequent flier, whose name the CCI refused to divulge, has filed a case with the Competition Commission of India against the proposed agreement.
The complainant said if such an agreement was inked then the two airlines would dominate the market leading to cartel formation.
"We have received a complaint from an individual against the code-sharing agreement between Jet Airways and Kingfisher Airlines. According to the complainant this could (result in) an abuse of dominance as the two would control market share of close to 60 per cent," a senior CCI official told PTI.
When contacted, a Jet Airways' official said they have recently received a letter from the CCI requesting information relating to the proposed co-operative arrangements between the company and Kingfisher.
"The information is being collected and will be submitted to the Commission as soon as it is ready," Jet Executive Director Saroj Datta said in e-mail reply.
Kingfisher Airways, however, declined to comment.
The case is before the Director General, the CCI official said, adding "outcome of the investigation could be expected in a month or so".
The scope of the strategic alliance between Jet and Kingfisher, announced in October 2008, includes code-sharing on both domestic and international flights and joint fuel management with a view to reducing expenses.
Besides, common ground-handling, cross-selling of flight inventories using a common global distribution system platform and cross-utilisation of crew on similar aircraft types are the other key areas of the proposed agreement.
The CCI Act empowers the competition watchdog to look into cases pertaining to abuse of dominance and anti-competitive practises.
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