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India – CCI Approves Joint Venture Between Airbus And Singapore Airlines.

28 December, 2014

 

 

On September 20, 2014, CCI approved the proposed transaction between Airbus Services Asia
Pacific Pte. Ltd (‘Airbus’) and Singapore Airlines Limited (‘SIA’) seeking to set up a joint venture,
the Airbus Asia Training Centre Private Limited (‘AATC’). Under the terms of the proposed
transaction, Airbus would hold 55% of AATC and SIA would hold the remaining 45%.

 

CCI noted that Airbus is an indirect subsidiary of Airbus Group N.V, which is engaged in the

business of management and performance of services on aircraft and warehousing activities related to aircraft spare parts. It also noted that SIA is engaged in the business of providing airline
services and whose principal activity is passenger air transportation. AATC, incorporated in Singapore, would be engaged in the business of providing civil flight aviation training programs for
Airbus aircraft. As part of the transaction, SIA would be transferring 3 flight simulators to AATC.

 

The CCI observed that flight pilot training services can be broadly distinguished into (i)
pilot training, whereby an individual with no previous flight experience is given the license to fly
a commercial aircraft and (ii) certain flight pilot training categories, wherein a pilot is trained at
controls of a particular aircraft and gains necessary license endorsements. AATC sought to provide flight pilot training services in the segments like (i) intermediate and advanced phases of
multi crew pilot licenses – a type of ab initio flight training, (ii) conversion training – where a pilot
is first trained at controls of a particular aircraft and gains necessary license endorsements, (iii)
recurrent training – required periodically to ensure that the pilot retains the necessary license
endorsements, (iv) additional training – which is purchased separately and can be provided by all
flight training service providers and (v) contractual training – which is provided pursuant to an
aircraft sale and purchase agreement or lease agreement, through credits to the airlines.
CCI found that SIA only operated flights to and from India, and does not have a pilot training
center in India, although the Airbus group did have a center in India. CCI also noted that a number
of domestic TRTOs (type rating training organizations) like Air India, Jet Airways as well as
independent training centers such as InterGlobe–CAE, CAE, Bangalore and FSTC, provide flight
pilot training. 

 

CCI concluded that because there were no horizontal or vertical overlaps between Airbus
and SIA, it was unlikely that the proposed transaction would cause any AAEC in India and has accordingly it approved the transaction.

 

AZB

 

For further information, please contact:

 

Zia Mody, AZB & Partners
zia.mody@azbpartners.com

 

Abhijit Joshi, AZB & Partners 
abhijit.joshi@azbpartners.com

Shuva Mandal, AZB & Partners 
shuva.mandal@azbpartners.com

 

Samir Gandhi, AZB & Partners
samir.gandhi@azbpartners.com

Percy Billimoria, AZB & Partners 
percy.billimoria@azbpartners.com

 

Aditya Bhat, AZB & Partners 
aditya.bhat@azbpartners.com

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