The Delhi High Court yesterday issued notices to Indian Airlines (IA), Alliance Air and CMYK Multimedia Pvt Ltd following a suit filed by Media TransAsia Ltd, supplier of in-flight magazine, Swagat, over introduction of another inflight magazine, Darpan.
Media TrasnsAsia has sought a permanent injunction from the court restraining IA and its subsidiary, Alliance Air, from introducing any other in-flight magazine till the expiry of the contract with the company, which is in 2004. According to company sources, no other airlines in the world has two competing in-flight magazines. Justice RC Chopra, has fixed August 12 as the next date of hearing.
Media TransAsia alleged that Alliance Air had put up an ad in a leading English daily for supply and placing on board inflight magazines only for its flights in October 2001. Following that in May 2002, Alliance Air entered into a contract with CMYK Multimedia for the supply of inflight magazine Darpan.
The main contention was that by the contract entered into with IA in 1998, Media TransAsia had exclusive circulation right on board of IA and Alliance Air flights from 1999 to 2004. As such, a second inflight magazine could not be introduced.
Media TransAsia pointed out that even after the introduction of Alliance Air flights in 1996 on most of the routes of which IA stopped flights, IA continued to take the same number of Swagat magazines, 60,000 per month. In fact, IA even asked Media TransAsia to incorporate Alliance Air ads and their logo on Swagat’s cover along with IA’s.
Swagat magazine is supplied and placed on IA flights free of cost. In fact, Media TransAsia pays an amount of Rs 8,75,000 per month for the privilege given to them. The only source of revenue that they earn is through ads