Etihad Airways today got Competition Commission's approval for purchase of 50.1 per cent stake in Jet Privilege Private Ltd (JPPL), a customer loyalty programme unit of Jet Airways. 

Clearing the transaction by majority, CCI said that the deal was unlikely to have any adverse impact on market competition, as Etihad's purchase of 24 per cent stake in Naresh Goyal-led Jet Airways has already been approved and the two carriers were already partners in their respective frequent flyer programmes. 

Under such customer loyalty programmes, airlines generally offer certain benefits to their frequent flyers. 

Dissenting with this majority order, passed by CCI chairman Ashok Chawla and four members, one member Anurag Goel however said that the proposed deal was "likely to raise appreciable adverse effect on competition in the international air passenger transportation market, more particularly in those routes between India and Abu Dhabi". 

"A notice may, therefore, be issued to show cause to the parties to the combination calling upon them to respond within thirty days of the receipt of the notice, as to why investigation in respect of the proposed combination should not be conducted," his minority order said. 

Incidentally, Goel had also dissented with the clearance given to Etihad's purchase of 24 per cent stake in Jet through a majority order, which was passed by CCI in November 2013. 

However, the acquisition faced numerous regulatory roadblocks and one petition against this deal is still before the Supreme Court, while markets regulator Sebi also began having a fresh look at the deal after certain observations were made by CCI with regard to the level of control and rights being granted to Etihad. 

CCI also imposed a fine of Rs one crore on Etihad in December 2013 for non-disclosure of certain information on time, although this penalty has no impact on its approval. 

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