)
Jet Airways’ alliance with UAE-based Etihad Airways is facing fresh trouble with the Competition Commission of Singapore issuing a notice on Thursday seeking comments from the public on the proposed deal. The two airlines have sought anti-trust immunity in Singapore as they expand the commercial co-operation pact.
The commission said it received a notification from the two airlines in June. “The notification is made in relation to Section 34 of the Competition Act, which prohibits agreements between undertakings, decisions by associations of undertakings or concerted practices which have as their object or effect the prevention, restriction or distortion of competition within Singapore,” the Commission said.
In its statement, Jet Airways said, "Following Etihad Airways' investment in Jet Airways, both parties have applied for anti-trust immunity in various jurisdictions, including in Singapore. In this regard, the CCS is currently evaluating the joint application for anti-trust immunity."
According to the Jet-Etihad deal, the two airlines will collaborate on pricing, route and schedule coordination, marketing, code-sharing, networks, customer service and resourcing. The two airlines submitted that the alliance would result in various efficiencies and synergies. These include lower administrative costs, sharing of joint resources, better customer services, and efficient administration of their respective businesses.
Etihad concluded its Rs 2,057 crore investment into Jet Airways for 24 per cent stake in November 2013, after receiving nod from the Competition Commission of India. However, the alliance could face regulatory scrutiny from other markets under the local competition laws and is seeking immunity from Singapore, which will allow it harmonise sales and pricing initiatives in the local market.
