The Jet-Etihad Airways deal will need to file fresh or revised application before the Competition Commission of India following the conditional nod given by the FIPB.
“Since the deal is time-bound, the acquirer – Etihad – will have to file an amended application informing about the changes in the deal structures. The regulator will look into the replies and give its decision within 30 days of filing the application,” a lawyer in know of the developments said.
The Commission had also sought detailed response from Jet and Etihad on the combined market share last week.
Sources in CCI said besides filing the amended application, the airlines may also file its response on the combined market share by next week to allay concerns of rival airlines that the deal may cause dominance on certain international routes.
Key changes in the Rs 2,058-crore deal includes the reduction in the number of directors Etihad will have on the board of the domestic carrier to two, leaving ‘effective control’ with the Indian promoters. Under the original proposal, four directors were to be nominated by Jet Airways and three by Etihad, besides seven independent directors of which at least six had to be Indian citizens.
According to the Competition Act, all high-value merger and acquisitions with combined turnover of Rs 4,500 crore or more need approval from the competition watchdog.
The deal is the first since the Government allowed 49 per cent foreign participation in India's airline sector last September.