AI edgy about Jet-Etihad deal

Air India has called Jet-Etihad deal anti-competitive

GN Bureau | November 12, 2013



Following the deal between Jet Airways and Etihad Airways, which will see the Gulf airline purchase a 24% stake in Jet Airways, Air India is anticipating loss of international passenger traffic due to the enhanced bilateral rights given by India to Abu Dhabi.

According to a news report in The Financial Express, Air India has written to the Competition Commission of India (CCI) claiming that the demand for travel between India and Abu Dhabi does not justify the large number of weekly seats.

In April, the aviation ministry more than tripled the number of weekly seats allocated between India and Abu Dhabi to 53,000, which is to be done over three years.  Of this, 24,000 seats have already been allocated for the winter schedule from October 2013 to March 2014

Air India is yet to elaborate the market share it stands to lose once the alliance becomes operational. The deal between Jet Airways and Etihad Airways, is currently awaiting clearance from the CCI. The deal has already been cleared by the cabinet committee on economic affairs.


 

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