CCI examining Air India, Vistara merger, says report

Anti-trust body Competition Commission of India (CCI) is scrutinising Air India's planned merger with Vistara and has asked the company why it should not be investigated further over competition concerns, according to a source with direct knowledge.

Tata said in November it was merging its two full-service carriers — Air India and Vistara — to create a bigger airline to take on local rivals such as IndiGo and Middle Eastern carriers that dominate outbound traffic from India.

The CCI has sent a so-called "show cause" notice to Air India to explain its position, expressing concern that on some routes and categories — such as business class travel — the merged entity could have a monopoly, the source said.

The CCI and Air India did not immediately respond to requests for comment.

Vistara is a joint venture between Singapore Airlines and India's Tata Sons, which last year took control of then state-run Air India.