BackCCI imposes `1 crore penalty on Etihad Airways
Penalty imposed under section 43 of the competition Act for consummating parts of a deal without approval of CCI
Premium
New Delhi: The Competition Commission of India (CCI) has imposed a penalty of ₹ 1 crore on Etihad Airways PJSC, the national airline of the United Arab Emirates, for “consummating parts of a deal without approval of CCI", its spokesperson said.
Etihad recently concluded a deal to buy a 24% stake in Jet Airways (India) Ltd.
The CCI spokesperson added that the penalty was imposed under section 43 of the competition Act.
On 26 February, Etihad Airways purchased three Heathrow airport slots of Jet Airways for $70 million and leased it back to the Indian airline ahead of the deal. On 24 April, Etihad signed an agreement with Jet Airways to acquire the 24% stake for $379 million.
Etihad Airways had made an overall commitment to Jet Airways that included the injection of $220 million. This amount refers to the money paid to Jet for slots at Heathrow Airport, London, and payment for a majority stake in its frequent flier programme.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
