Praful Patel: No fear about Jet Airways monopoly
The Indian Minister for Civil Aviation Praful Patel has said that the government has no fears or doubts over the fact that the acquisition of Air Sahara by Jet Airways would create a monopoly in the Indian aviation market.
He was speaking to reporters in Mumbai when he said: “Mergers and acquisitions have become a common practice these days… this is going to happen, but there is no need to fear about monopoly. Every airline starts in a small way and tries to expand its operations. We have been liberal in granting licenses to private airlines. Already some have been permitted and applications of few others were being considered.â€
He also cited the example of state owned Indian (formerly Indian Airlines) which once used to control the entire Indian aviation market with no private players around. However, after the private players arrived and competition increased in the field, the market share of Indian fell down considerably.
The entry of budget airline companies like Air Deccan, GoAir, and IndiGo Airlines have made the scenario even more interesting. We are now seeing increasing fight between the players and huge discounts for the air travelers. The deal between Air Sahara and Jet Airways would still require approval from Director General of Civil Aviation and the Company Law Board.