SIA-Airbus JV gets Competition Commission's approval

The Commission says deal not likely to have an appreciable adverse effect on competition in India

Singapore Airlines’ proposed joint venture with Airbus Services Asia Pacific, to provide flight pilot training services, has received green signal from the Competition Commission of India (CCI).

The proposed combination involves formation of a joint venture company, Airbus Asia Training Centre (AATC), to provide flight pilot training services.

In AATC, Airbus Services Asia, part of French major Airbus, will have 55 per cent stake while 45 per cent will be with Singapore Airlines.

Clearing the deal, CCI said there is no horizontal overlap or vertical relationship between the parties with respect to provision of flight pilot training activities.

The deal is “not likely to have an appreciable adverse effect on competition in India,” CCI said.

AATC would provide civil flight aviation training for airbus aircrafts to Singapore Airlines and other carriers.

Singapore-based Airbus Services Asia is mainly into management and performance of services on aircraft and warehousing activities related to aircraft spare parts. It is part of Airbus Group, which has presence in India.

Singapore Airlines only operates flights to India and does not have any flight pilot training centre in the country.

Airbus Group, which does not have any flight pilot training centre in India, provides such services through its arrangement with full flight simulators (FFS) providers like CAE, Bangalore and InterGlobe-CAE, the order said.

According to details in the order, the joint venture firm would provide flight pilot training services on FFS for the Airbus aircrafts belonging to the A320, A330, A350XWB and A380 family and certain other types of Airbus aircrafts.

"As regards the requirement of instructors for flight pilot training programmes, it is not mandatory for the instructors to be from the respective aircraft manufacturers," CCI said in its order.

The Directorate General of Civil Aviation (DGCA) can grant any flight training centre a Type Rating Training Organisation (TRTO).

For providing flight pilot training, CCI said there are TRTOs and independent training centres such as InterGlobe-CAE and CAE, Bangalore in India.

Noting that most Indian carriers operate Airbus A320 family, CCI said as these aircrafts "has not been included in the non-compete and the exclusivity clause provided in the joint venture agreement, Airbus Group may use FFS facilities in India to provide flight pilot training services for the A320 aircrafts".

As per details provided to the regulator, Jet Airways -- which mostly has A330 aircrafts -- had largely used the Airbus training centre in Toulouse, France in the last 3-5 years.

Air India has only two such A330 aircrafts.

Singapore Airlines and Airbus Services had executed the deal on August 13, this year, following which they had approached CCI for approval in September.