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The Competition Commission of India (CCI) has rejected Air India’s allegation of predatory recruitment ways made against no-frills carrier IndiGo’s parent InterGlobe Aviation, saying the matter is more of an employment issue.
Air India and IndiGo are among the key domestic airlines.
Observing that the complaint is more of an “employment issue than a competition issue”, CCI said the issues being alleged do not raise any concern within the meaning of the Competition Act. InterGlobe operates budget carrier IndiGo.
Among others, Air India had alleged InterGlobe has systematically indulged in predatory recruitment of its trained pilots, which has resulted in cancellation and delays of the national carrier’s flights. According to the national carrier, it invests heavily in training pilots.
“The allegations levelled against the opposite party (InterGlobe) do not seem to raise any competition concern in the market. An airline recruiting another airline’s pilots will not bring about structural changes in the operations of the market,” CCI has said.
With respect to the allegation that InterGlobe is violating the Directorate General of Civil Aviation (DGCA) directions, CCI, in its order dated February 10, said there was no bar on Air India or any other airlines from recruiting pilots belonging to other carriers after seeking no-objection certificate (NOC) from them.
This indicates there exists a flexibility with respect to the pilot recruitment, CCI noted.
According to DGCA, it is mandatory for pilots to obtain NOC and airlines must ensure that the pilots hired by them have to serve the required six month notice period.
Dismissing the complaint, CCI said there was no case of contravening Section 4 of the Competition Act. Section 4 pertains to abuse of dominant market position.
