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PRESS TRUST OF INDIA
June 8: Monopolies and Restrictive Trade Practices Commission (MRTPC) today stayed a directive which provided exclusive ground handling rights to Air India (AI) at Cochin International Airport till June 28.
Acting on a private complaint filed by a consumer, MRTPC member Sardar Ali said Air India could not impose any restriction on ground handling by Jet Airways till the next date of hearing. The complaint filed by Jet Airways in this regard will also be taken up on June 28 along with the private complaint of R Venugopal, a frequent flier of Jet Airways.
Counsel for Venugopal, AN Haksar said that the handling of ground facilities by Air India would cost Jet Airways about Rs one lakh per flight which would ultimately be passed on to the passengers.
The Commission directed Cochin International Airports Ltd (CIAL) and Air India to file their replies within 10 days.
The Commission also gave liberty to CIAL and AI to approach MRTPC for any clarification or modification in the order if required.
Accordingto the directive passed by CIAL, Air India was supposed to exclusively take over ground handling facilities, which involve ramp handling and passenger facilitation, at the New Cochin Airport from June 10, 1999.
After today's MRTPC order, Jet Airways will continue to handle the same till the next date of hearing on June 28. Jet Airways, which operates three flights from Cochin every day, challenged in its complaint before MRTPC, CIAL's decision to give exclusive rights to Air India for ground handling at the airport.
Jet Airways counsel Gulam Vahanhati and Rajiv Shakdher said it was ironical that Cochin Airport, despite being a partly private enterprise, was encouraging monopolistic trade practices. The Commission also asked Director General (Investigations) to investigate into the allegations that CIAL and AI were indulging in monopolistic trade practices and file his report within 60 days.
MRTPC member said "I am of the prima facie view that imposition of such restriction on Jet Airways, tantamount torestrictive trade practices which are deemed to be prejudicial to public interest in the light of the Supreme Court ruling in Voltas case."
The Rs 230 crore International Airport was inaugurated on May 25 and is expected to become operational next week. It is the country's first airport which has been constructed with government support and is partly private. Before approaching MRTPC, Jet Airways also made representations to Civil Aviation minister Ananth Kumar and Kerala Chief Minister EK Nayanar, who is also the chairman of CIAL, in this regard.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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