Compat issues notices to CCI, Jet Airways

Competition Appellate Tribunal has issued notice to fair trade watchdog CCI on an appeal challenging the clearance given to Rs 2,060 crore Jet-Etihad deal .

This follows an appeal filed by Air India's former executive director Jitendra Bhargava challenging the Competition Commission of India 's (CCI) nod to the deal.

Notices have been issued to CCI and Jet.

The tribunal has scheduled the next hearing of the case for January 9.

The CCI gave its green signal for the deal, involving Abu Dhabi carrier Etihad's purchase of 24 per cent stake in Naresh Goyal-led Jet Airways, last month.

In his appeal, Bhargava has contended that CCI failed to effectively carry out appreciable adverse effect on competition assessment and "placed all passengers and indeed the entire airline industry into a grave risk of suffering irreparable damage and permanently eliminating competition".

According to Bhargava, if the proposed combination is permitted to be completed in its present form, air passengers are likely to be deprived of airline choices on key routes, pay higher prices and have fewer options on aircraft, timings and service quality.

The CCI majority order, passed by its chairman Ashok Chawla and four members, said the Jet-Etihad combination is not likely to have an appreciable adverse effect on competition.

However, one CCI member in his dissenting order had observed that the deal could have adversely competition in international air travel market.

Separately, CCI is looking at whether Jet and Etihad failed to provide information on certain commercial pacts that could raise anti-competition concerns.

Regarding the deal, BJP leader Subramanian Swamy has written to capital market regulator Sebi asking Etihad to be considered a 'person acting in concert' with Jet's current promoters.