India’s competition regulator has flagged antitrust concerns over Air India’s planned airline merger with Vistara.
The Competition Commission of India (CCI) has reportedly identified certain routes which would effectively give the merged entity a monopoly position.
It also flagged business class travel as they are the only two major carriers with widespread premium services.
Any official review would likely delay the merger process.
Tata Group majority owns both airlines.
Tata said last year it planned to merge its two full-service carriers.
The CCI issued ‘show cause’ notice to explain its position, with 30 days to respond, according to sources.
If the merger goes through, around 80% of the domestic market would be controlled by just two airlines.
