Rival airlines not ruffled
NEW DELHI: Jet Airways’ mega deal to gobble rival Air Sahara seems set for a smooth take-off. Despite Competition Commission of India’s views that the deal should be investigated from the monopoly angle, the aviation industry largely gave it a thumbs-up saying such tie-ups help grow the industry and not create monopolies.
While welcoming the deal, some rival airlines said government should ensure that the alliance does not give Jet an undue advantage in getting parking slots or flight rights to major metro cities.
The deal, industry experts added, is unlikely to face any turbulence in the Indian regulatory framework as Jet’s post-acquisition market share would remain within the 50% mark. Jet controls about 36% of the domestic skies while Sahara’s market share stands at 10-11%. The combined market share will be in the range of 46-47%.
Even officials in civil aviation ministry said it is unlikely to investigate the deal. “It’s a normal deal between two corporate entities. We are working with DGCA and some legal pundits on the matter.
SOURCE:THE TIMES OF INDIA
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