Companies & Sectors
Jet-Etihad deal under scanner in Singapore

Competition Commission of Singapore feels the Jet-Etihad alliance relates to the provision of international air passenger transport services with a specific focus on the Singapore origin and destination city pairs

The Jet Airways-Etihad deal is facing fresh trouble as the Competition Commission of Singapore has begun a scrutiny of the deal to probe any possible violation of its competition laws.


The deal, which involves purchase of a 24% stake in Naresh Goyal-led Jet for about Rs2,060 crore by Etihad and other tie-ups, has been going through turbulent times ever since it was announced more than a year ago in April 2013.


After months of scrutiny, the deal got consummated late last year after clearance by various Indian regulators, including the Competition Commission of India (CCI) and the Securities and Exchange Board of India (SEBI).


However, the deal has now come under the scanner of the Competition Commission of Singapore, as the alliance 'relates to the provision of international air passenger transport services (and associated support services), with a specific focus on the Singapore origin and destination city pairs'.


The CCS said in a notification that it was seeking feedback from the public and other stakeholders till 11th July, after which it would take its final call on the deal.


The notification was issued “in relation to Section 34 of the Competition Act which prohibits agreements between undertakings, decisions by associations of undertakings or concerted practices which have as their object or effect the prevention, restriction or distortion of competition within Singapore’’.


The CCS further said the Jet-Etihad alliance “includes pricing, route and schedule coordination, marketing, code-sharing, networks, customer service and resourcing decisions between the parties.


“The parties envisage that the proposed commercial alliance will result in various efficiencies and synergies. These include lower administrative costs, sharing of joint resources, better customer services and efficient administration of the parties’ respective businesses,” it added.


Abu Dhabi-based Etihad is the national airlines of the United Arab Emirates and it operates to over 85 passenger and cargo destinations in over 50 countries.


Jet is a leading airline in India, operating to over 50 domestic and 20 international destinations.


The two carriers are members of any of the three major international aviation alliances (Star Alliance, Oneworld and Sky Team), CCS said.


The CCS is a statutory board functioning under the purview of the Ministry of Trade and Industry of Singapore.


The Competition Act of Singapore empowers the CCS to investigate alleged anti-competitive activities, determine if such activities infringe the Act and impose suitable remedies, directions and financial penalties.



Nagesh Kini

2 years ago

All the concerns raised by the CCS are absolutely valid.
In the first place why were they not raised by the CCI and SEBI who ought to be the right authorities, since the locus is India.

We need a second airport in all metro cities!

Keeping in mind a second airport for Bengaluru, reviving the old HAL airport needs government attention

Recently, Hyderabad hosted the Aerospace Luminary Lecture series sponsored by the Hyderabad Chapter of the Aeronautical Society of India. RK Tyagi, chairman of Hindustan Aeronautics Ltd (HAL), while delivering the keynote address is reported to have stated: "nowhere in the world are airports closed once a new one is developed. It happens only in India. In fact, most cities take pride in having more than one airport. Therefore, we will make efforts to revive the Bangalore airport".


Tyagi appears to have further stated that HAL was ready to operate civil aircrafts at Ojhar (Nasik), which is about 200kms from Mumbai and 220kms from Pune. He felt that such a move would boost the regional economy also.


It may be recalled that until the modern Bangalore International Airport (BIA) was built and commissioned, HAL airport at Bangalore handled all domestic as well as international flights, both of which have grown tremendously in the last few years. It may be noted that BIA has now been renamed as Kempegowda International Airport. The diversion of all civilian flights to the new airport was part of the contractual agreement.


The old airport, soon thereafter, lost its past glory which was because it was easily accessible and could be motored down in 15 to 20 minutes. For the new airport (KIA) it would take a minimum of one to one and a half hours from the city centre, depending upon traffic and the time of the day!


Air passengers who were accustomed to getting dropped by family members to the old airport would now shudder to think of such a drive; airport cabs started with Rs300 per trip now charge over Rs600, on the top of which, they have to pay a toll fee too! Such incidental charges have been rising in the last couple of years.


The Civil Aviation industry is growing by the day and air travel is no longer a luxury meant for the rich, and because of its competitive nature and increasing number of players, there is a growing demand for good and economical service.


There are government plans to increase number of airports in two and three-tier towns and cities. Domestic air travel has also increased and low cost carriers, meeting the regional needs have begun to appear on the scene. A few months ago, Air Costa started its operations from Vijayawada; last week Air Asia began its flights from Bangalore and in a few months, we would expect Tata-SIA to commence their operations too!


Since this industry is expanding, the Civil Aviation Policy of the government suggests setting up a Civil Aviation University. Press reports indicate that there are 17 approved training schools in operation, against the 40 licensed, and the demand for trained, qualified staff has also increased. By a rule of the thumb, at least 100 direct jobs will be created for each new aircraft added to the industry, which obviously would change depending upon the type of aircraft and frequency of flights. In fact, it is estimated that this industry would create employment opportunity for over 350,000 people. If new airports are built, the construction industry would also

give a boost to the employment scene.


It is now necessary that the Aviation Ministry draw up a 10-year master plan to:


- set up a civil aviation university

- identify the prospective towns/cities for building new airports

- identify which of these airports will be private and others PPP

- establish 2nd and 3rd airports in all metropolitan cities

- Civil Aviation University must establish overseas associates to facilitate their students to go for extensive training which is not available in the country


Finally, we may also remember that due to the intense competition between low cost domestic carriers, tickets have become cheaper as compared to the very high cost of cab fares to and from airports. The Government must also consider how HAL's old Bangalore airport can be revived to make it possible for domestic carriers to use this facility, which will be a boon to the travellers.


(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce. He was also associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US.)



Dr Anantha K Ramdas

2 years ago

Thank you Mr Raghunathan for your response. Civil Aviation rules now insist on a 150 Kms separation between two aiports, but simply because HAL airport was formerly used, such a proposal may be considered.

In such an event, chances are government would seek a professional airport management company to handle the matter which will be preceded by a public hearing.

May be the regional domestic low cost carriers would benefit by such a move as also the air travellers.

HAL would probably be better off with their own production programmes rather than managing the port, which, as you mentioned, may not have been very satisfactory!


2 years ago

Thank you, Mr Ramdas.

I am a resident of Bangalore and have been a resident for over 29 years.
Mr Tyagi, Fmr Chairman of HAL is absolutely wrong since the old airport used to generate revenue of Rs. 150 - 200 crs and HAL did not spend any money except towards its bottom line. May be Mr Tyagi as a the Chairman never used the airport especially the toilets and the passenger area!!!


All the things Hillary Clinton’s book doesn’t say about Iraq

In “Hard Choices,” the former secretary of state ignores or glosses over key aspects of her record on Iraq—including State Department responsibility for the country’s security assistance.

Having co-authored a 2007 biography of Hillary Clinton, I know that Iraq is not one of her favorite subjects. But with the bloodshed and sectarian division now crippling Iraq, I wondered what her new memoir, "Hard Choices," had to say about a country that's long been a political minefield for her.

The answer is not a lot. There is no chapter on its own for Iraq, like there is for Gaza, or Burma or Haiti. The discussion of Iraq is scattered throughout the 632-page book, and it is mostly about old battles. Clinton does not delve into the challenges she faced as secretary of state in 2011 as her department inherited responsibility for Iraq's security assistance when American troops withdrew.

Instead, the book has made headlines for her admission, for the first time in 12 years, that she made a "mistake" when voting to authorize the Iraq war when she was still a senator in 2002.

A closer look at what Clinton wrote—and didn't write—about that vote, about her views on the Iraq troop surge and about the country's ongoing sectarian strife is revealing. Clinton continues to misstate parts of her record on Iraq, while failing to address some of the tough choices she took as America's chief diplomat.

Here's a refresher on the details, drawn from interviews and government records and reports on Iraq. Clinton's office and the book's publicist did not respond to requests for comment.

"I Was Totally Briefed" for the Iraq War Vote…

Clinton explains her war vote this way:

"My lack of confidence in the Bush Administration went back to the fall of 2002, when it was boasting of ironclad intelligence about Saddam Hussein's weapons of mass destruction. After weighing the evidence and seeking as many opinions as I could inside and outside the government, Democrats and Republicans alike, I voted to authorize military action in Iraq, if the diplomatic efforts, meaning the U.N. weapons inspections, failed." She also wrote that she "made the best decision I could with the information I had."

In our 2007 book about Clinton, co-author Don Van Natta Jr. and I showed that she had never read what arguably was the most authoritative information available: the National Intelligence Estimate on Iraq. After book excerpts appeared, Clinton was asked in the first presidential debate with Barack Obama whether she regretted not reading the estimate. "I feel like I was totally briefed," she said.

But Didn't Read The Best Report…

The estimate concluded that Iraq was rebuilding its capacity for nuclear and other weapons of mass destruction. But there were dissents within the report that turned out to be accurate. Clinton's colleague, Florida Sen. Bob Graham, then the intelligence committee chairman, had read the report. At a lunch three days before the war vote, he forcefully urged Clinton and fellow Democrats to also read it. Graham opposed the resolution for war.

Clinton doesn't specify her pre-vote sources of information. But one person she didn't consult was Carl Ford, Jr. At the time, Ford was in charge of the State Department's intelligence bureau, which correctly reasoned in the intelligence estimate that Iraq was not rebuilding its nuclear capabilities.

Ford, now retired, told me in an interview Monday that Clinton never consulted him. He secretly briefed a few Congressional committees involved with national security, but Clinton was not then a member of them.

A Vote for Diplomacy (Not Counting a Vote Against Diplomacy)…

Clinton argues in the book that she really was voting for diplomacy, not war. That repeats a stance she made when she cast her vote, and it's one she continued to make in the following years. But the resolution she backed gave President George W. Bush wide latitude to go to war. Its title was unambiguous: "Authorization for use of military force against Iraq resolution."

One of Clinton's Democratic colleagues offered an amendment favoring more diplomacy. The amendment's author, Sen. Carl Levin of Michigan, said his proposal would require Bush to return to Congress if U.N. diplomacy failed, and ask for another war resolution. Clinton voted against it.

Opponents argued that the Levin amendment limited presidential authority, and it failed. But three of the senators who backed the amendment also voted for the war authorization. If Clinton had voted for the Levin amendment as well, her claims of wanting more diplomacy would be far more persuasive.

While Lining Up With Bush on al-Qaida's (erroneous) Pre-War Role…

On the Senate floor the day of the war vote, Clinton went further than any other Democratic senator—and aligned herself with President Bush—by accusing Saddam Hussein of giving "aid, comfort and sanctuary to terrorists, including al-Qaida." That position was unsupported by the National Intelligence Estimate, and it turned out to be not true.

After the invasion, al-Qaida did gain a foothold in the country. Today, some of the worst violence in Iraq is driven by the Islamic State in Iraq and Syria (ISIS), an outgrowth of the original al-Qaida group. ISIS has grown in strength with a goal of forming a new Islamic state in Iraqi and Syrian territory.

And Opposing the (Successful) Iraq Troop Surge…

Along with many others, Clinton opposed the surge of troops in Iraq. The surge was widely credited with reducing violence and restoring stability in a country where the governing majority was Shia and the minority was Sunni. The reverse had been true under Saddam Hussein.

In her book, Clinton says her decision to oppose the troop surge stemmed from her residual distrust of President Bush dating back to the war resolution.

"Five years later," she writes, "President Bush asked us to trust him again, this time about his proposed surge, and I wasn't buying it." The problem, as she saw it, was that throwing more troops at the problem wouldn't work without a "robust diplomatic strategy" that went to the underlying challenges, including "the sectarian conflicts that were tearing the country apart."

Clinton writes that the surge proved successful because its architect, Gen. David Petraeus, followed a more comprehensive strategy, as she had urged when he appeared before the Senate in January 2007.

But That Was Just Presidential Politics…

But her book doesn't address the surprising admission that then-Secretary of Defense Robert Gates says she made at an October 2009 White House meeting to discuss a proposed troop surge in Afghanistan.

"In strongly supporting a surge in Afghanistan," Gates wrote in "Duty," his memoir, "Hillary told the president that her opposition to the surge in Iraq had been political because she was facing him in the Iowa primary."

Gates found the exchange "remarkable," and quotes Clinton as going on to say, "The Iraq surge worked."

As Her Department Takes Over Security Assistance in Iraq…

The administration's point person on Iraq has been Vice President Joe Biden. Still, Clinton had significant responsibility for the relationship as secretary of state. Not only was she the country's top diplomat, but responsibility for security assistance in Iraq was transferred to the State Department from the Pentagon after American troops were withdrawn at the end of 2011. Iraqi legislators barred even a limited presence, something that hampered military training.

There is nothing about this in her book. One former State Department official, who worked on Iraq under Clinton, said the omission was consistent with the experience of staffers: Clinton didn't devote a lot of political capital or time to the subject.

As the announcement of the troop withdrawal played out, Clinton did appear on two talk shows to assuage concerns about the future security situation in Iraq. She told both questioners there would be a "very robust diplomatic presence" and continued security training, now under the auspices of her department.

Plans For Training and Diplomatic Outposts Fall Back…

A program to school Iraqi police to fight terrorism and crime, run by the State Department, came under strong criticism by auditors and was drastically scaled back during Clinton's tenure, according to federal reports. The Baghdad Police Academy Annex was closed by 2012, and the American group that coordinated security with Iraq, then under State Department control, was faulted in a 2013 audit by the Pentagon and State Department for a lack of "clearly defined responsibilities" that put at risk "bilateral security operations with Iraq."

The promised diplomatic presence was scaled back, too. Iraq experts in the State Department proposed to keep open American facilities in places like Kirkuk, but the plan fell by the wayside, according to the former official. The plan's purpose was to keep in contact with the increasingly disenfranchised minority under the country's Shia-dominated leaders, led by Prime Minister Nouri al-Maliki. Shortly after the departure of American troops, the country's top Sunni official had to flee to avoid being arrested.

"The worry was that the Sunnis would feel abandoned," the former official recalled.

In 2012, the new ambassador to Iraq, Robert Beecroft, was asked about Maliki's autocratic tendencies at his confirmation hearing. He said that working through disputes in Iraq was a "slow, protracted process" but the U.S. was working hard to "encourage" consensus and "we'll continue to do that as best we can."

"The encouraging thing," he told the senators, "is that Iraq has not fallen apart."

While Violence and Sectarian Conflict Get Worse…

The sectarian conflict, which Clinton worried about in 2007, has grown worse since Maliki's re-election in 2010, according a recent article in the Washington Post.

By October 2012, a few months before Clinton left the cabinet, a government audit found that the security situation in Iraq was deteriorating. Violence had reached its highest levels in two years, according to the Special Inspector General for Iraq Reconstruction. And Sunni terrorist groups like ISIS had "regained strength."

Two years later, the group has assumed control over large chunks of the country.

And Iraq's Leader is To Blame

As for Maliki, Clinton's one reference to him in the book is part of a description of how Americans have helped his government rebuild Iraq's oil industry. But as she has been promoting her book around the country, the former secretary has chosen a more undiplomatic description.

He "has failed," she told Fox News, and she no longer thinks he "is the person to lead Iraq."
Editor's note: Chapters about Iraq from Jeff Gerth's 2007 biography of Hillary Clinton, "Her Way", co-authored with Don Van Natta Jr. were excerpted in The New York Times under the title, "Hillary's War."



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