sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« Mergers and Acquisitions »
 Wipro Consumer Care scouts for acquisitions in developing countries
 Top 5 most interesting mergers and acquisitions of the past year
 Vodafone, Idea merger in process; likely to be completed by May
 Indian auto component makers are hungry for overseas acquisitions
 Nine digital health mergers and acquisitions from the first quarter of 2018
 Deals of the day-Mergers and acquisitions April 2, 2018
  Deals of the day-Mergers and acquisitions March 28, 2018
 Top 7 M&A deals in India: Who joined hands with whom and for how much?
 Manipal Hospitals buys Fortis Healthcare: A look at major mergers and acquisitions in the pharma industry
 Deals of the day-Mergers and acquisitions March 28, 2018
 Merger and acquisition deal volume at 7-year high in 2017 with 1,022 transactions

Warning bell for airline mergers
June, 13th 2009

Mergers in the aviation sector can lead to the cartelisation of fares, according to a study.

With mergers happening, there is a strong likelihood of air fare collusion, especially during peak hours, Paramita Dasgupta, dean of the Administrative Staff College of India (Hyderabad), told The Telegraph.

The college today submitted a report to the Competition Commission of India (CCI) on the domestic air transport business.

The CCI has a major role to play in ensuring a healthy competition in the aviation sector, Dasgupta said.

The report suggests that the CCI should monitor fares and the greater control being exercised by some private airlines in certain areas such as slots and passenger traffic.

Ideally, there should be as many airlines as possible to avoid monopolistic market practices, Dasgupta said.

According to the report, Jet and Kingfisher have emerged dominant players following their merger deals.

Naresh Goyal-promoted Jet Airways acquired Air Sahara in April 2007, following the merger of two state-owned carriers Air India and Indian Airlines.

In early 2008, Vijay Mallya-owned Kingfisher merged Deccan Aviation with itself.

This along with the share of slots and price parallelism, may indicate a tendency for price collusion, said Dasgupta. At a later stage, this may lead to overpricing.

The report said the national carrier had been losing its market share to private airlines because of an ageing fleet, better services provided by competitors and restrictive government policies.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Mission

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions