CCI slaps Rs 258 cr penalty on Jet Airways, IndiGo, SpiceJet

Clamping down on cartelisation in fixing fuel surcharge on air cargo, the Competition Commission today imposed penalties totalling Rs 258 crore on Jet Airways, IndiGo and SpiceJet -- an order that is likely to be challenged by the carriers.
Passing an order on a complaint filed way back in 2013 against five carriers, the fair trade regulator, however, did not impose any fine on Air India and private carrier GoAir.
While a penalty of Rs 151.69 crore has been imposed on Jet Airways, the fines slapped on InterGlobe and SpiceJet are Rs 63.74 crore and Rs 42.48 crore, respectively.
InterGlobe Aviation operates no-frills carrier IndiGo.

"Jet Airways is not in contravention of the provisions of the Competition Act and it shall pursue all available legal steps to defend its position," a Jet Airways spokesperson said about the Competition Commission of India (CCI) order.
SpiceJet's Corporate Affairs General Manager Ajay Jasra said, "We are examining the order. We are likely to challenge this verdict".

Response from IndiGo was awaited.
CCI has penalised three carriers -- Jet Airways, InterGlobe Aviation Ltd and SpiceJet -- for "concerted action in fixing and revising Fuel Surcharge (FSC) for transporting cargo", an official release said.
These carriers have also been directed to cease and desist from indulging in anti-competitive practices.

The ruling has come on a complaint filed by Express Industry Council of India, which alleged that the five airlines indulged in anti-competitive practices. The grouping said the latest CCI order would deter entities from indulging in unfair business practices.
CCI said the three carriers colluded in fixing FSC rates.
Such conduct was found to have resulted in indirectly determining the rates of air cargo transport and thereby contravening Section 3 of the Competition Act. This section pertains to anti-competitive agreements, the release said.
"No penalty, however, was imposed upon Air India Ltd as its conduct was not found to be parallel with other airlines.

"Similarly, no penalty was imposed upon Go Airlines (India) Ltd as it gave its cargo belly space to third party vendors with no control on any part of commercial/economic aspects of cargo operations done by vendors including imposition of FSC," the release said.