Parliamentary panel wants checks on airline mergers

NEW DELHI: Apprehending "monopolistic situations" in the wake of acquisition of Sahara Airlines by Jet Airways, a Parliamentary Committee has said there was a need to 'check the trend'.

"Of late there have been changes in the strategy of private airline operators by way of consolidation of their operations.....these conditions can lead to monopolistic situation in the civil aviation sector and there is a need to check this trend," the Committee on Tourism, Culture and Transport, chaired by Rajya Sabha MP Sitaram Yechury, said in

its report tabled in Parliament.

The committee said while formulating the new civil aviation policy, all consequences of mergers of airlines, including the matter of reallocation of infrastructural facilities at airports should be addressed properly.

It also came down heavily on Air India for "lack of transparency" in its procedure while negotiating a wet-lease accord of one A340-330E aircraft last year, which it said was "against the practice of open competitive tendering process".

"The procedure followed by Air India was against the practice of open competitive tendering process and therefore lacks transparency," it said.

The committee said Air India had approached only Jet Airways in July 2005 to negotiate the wet lease of one A340-330E aircraft.