Jet Airways, Kingfisher receive notices from watchdog body on tie-up
28 Aug 2009
Mumbai: Jet Airways, India's second largest carrier by market share, said Thursday it had received a notice from the Competition Commission of India (CCI), seeking information on its alliance with rival carrier Kingfisher Airlines Ltd.
Airlines officials said the notice from CCI queried its alliance with Kingfisher. They said they would respond to the queries soon.
Reports in the media suggested the Commission had issued notices to Kingfisher and Jet Airways over the alliance both of them had entered into in 2008.
The tie-up entailed sharing of manpower resources and code-sharing agreements, among other things, in a bid to cut costs.
Kingfisher is the top Indian airline by market share, while Jet Airways is the second largest.
Apparently, the notice said there were allegations that both the airlines were using their dominant market position to increase fares and fuel surcharges.
There was no comment from Kingfisher.