Antitrust Authority Issues Notice To Air India Over Vistara Merger: Report
NDTV
The Competition Commission of India (CCI) has flagged that on some routes and categories, the merged entity could have a monopoly, sources said.
The national antitrust body is scrutinising Air India's planned merger with Vistara and has asked the company why it should not be investigated further over competition concerns, according to two sources with direct knowledge.
It is a new challenge for formerly state-owned Air India, which Tata Group took over last year. The airline has ambitious plans to modernise its fleet, operational systems and revenue management.
In a bid to streamline businesses, Tata in November said it was merging its two full-service carriers Air India and Vistara to create a bigger airline that will take on local rivals such as IndiGo and Middle Eastern carriers that dominate outbound traffic from India.
The Competition Commission of India (CCI) has flagged that on some routes and categories - such as business class travel - the merged entity could have a monopoly, said one of the two sources, who declined to be named as the matter is confidential.