CCI junks ex-Air India pilot's objections to airline's merger with Vistara

CCI junks ex pilot's objection

The Competition Commission of India (CCI) has rejected a plea made by a former Air India pilot who opposed the merger of Air India with Vistara, which is owned by Tata and Singapore Airlines.

"There is no evidence placed on record by the Informant (pilot) which may suggest any case of cartelisation or bid-rigging. Rather, there seems to exist an inter-se dispute relating to the service of the pilot between the parties," the CCI order said.

Tata has a substantial stake in both Air India and Vistara, the antitrust watchdog approved the merger of both the airlines in September , 2023. Air India was acquired by Tata in 2022.

According to the order, the pilot asked CCI not to approve the merger of Air India with any other airline or business group. The pilot alleged that the merger has led to an adverse impact on his career and service record and alleged that Tata Group and the Air India have formed a cartel as Singapore Airlines is trying to acquire share in the latter by concealing all material facts related to the pilot's service.

The pilot also levelled allegation of bid rigging in the process of acquiring Air India. Furthermore, according to the pilot, Air India is abusing its dominant position by imposing unfair/ prohibitive conditions on him . The pilot also alleged that the merger was "limiting and restricting the scientific and technical development of his career as a pilot."

CCI's observation:

The antitrust watchdog observed that the pilot has not placed any evidence on record to substantiate the allegations of bid-rigging. The CCI noted that the pilot and Air India seem to have a dispute pertaining to his service, outside of the purview of the competition act, 2002.

The CCI said, "In view of the Commission, no competition issue or concern arises from the facts and allegations stated by the Informant (pilot). As such, the Commission is of the considered opinion that no case of contravention of any provisions of the act can be made out against Air India in the present matter."

Thus, a full quorum of the CCI junked the plea against the merger of Air India with Vistara.