CCI clears Jet-Etihad deal

Written By Unknown on Selasa, 12 November 2013 | 23.25

It was in May this year that Jet Airways and Etihad had approached the Competition Commission of India (CCI) for its approval and after asking for series of information and having considered them and also the information submitted by Air India, CCI has approved the Jet-Etihad deal, reports CNBC-TV18's Malvika Jain.

Also Read: Etihad begins ground work to induct Jet Airways

However, in the order the commission has mentioned very specifically that if ever in future the commission finds that either of the companies or this combination is having any implications or impact on competition then action could be taken against them. This is an approval which has been given under Section 31 of Competition Act, but in the order it is mentioned that under Section 43 A the commission would be free to initiate action against the two companies if ever a need so arises.

There were various facets and concerns which were raised by various stakeholders as far as this deal is concerned, but now that it has been approved by the CCI it seems that all decks are cleared and probably and the company will probably be rolling out operations soon.

As per the act, there is no further proceeding which is pending before the commission and there are no hurdles as far as the competition law is concerned.

The two companies can go ahead and move on to the next step and launch the services if they have met all other conditions.


Jet Airways stock price

On November 12, 2013, Jet Airways closed at Rs 330.95, down Rs 8.75, or 2.58 percent. The 52-week high of the share was Rs 688.60 and the 52-week low was Rs 280.00.


The latest book value of the company is Rs -39.67 per share. At current value, the price-to-book value of the company was -8.34.


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