Kingfisher Faces CCI Inquiry

MUMBAI, INDIA (GaeaTimes.com)- CCI (Competition Commission of India) have gone ahead to revive an inquiry for the strategic alliance that was signed between Kingfisher Airlines Ltd and Jet Airways India Ltd. Reportedly, they suspect that the alliance between Kingfisher and Jet Airways might be a case of cartelization. The strategic alliance was signed between the two Airlines way back in the year of 2008.

According to the deal, both Kingfisher and Jet Airways have resolved that they would cooperate with each other on significant areas that includes fuel management, flight ticket cross selling and ground handling for a set of pre-selected destinations. As a matter of fact the share percentage for domestic flight traffic is 45 percent between Kingfisher and Jet Airways.

CCI said that if Kingfisher and Jet Airways are found guilty of the cartelization charges then they shall be subjected to a heavy fine that snatches a 10 percent out of the total turnover for both companies. The media was kept aloof of the preceding of the case as CCI chairman Dhanendra Kumar refrained from making any comments. The inquiry was launched way back in the year of 2009 but was called off soon as Kingfisher approached the Bombay high court. Samir R. Gandhi who happens to be a CCI lawyer told the media that there is no such pressure upon Competition Commission Of India for their inquiry into the strategic alliance that was signed between Kingfisher Airlines and Jet Airways. In reaction to this, Kingfisher has already approached the Supreme Court with a special petition on 4th may. The court however hasn’t decided on any date for the case.