CCI fines Jet Airways, InterGlobe Aviation, SpiceJet for unfair business ways

New Delhi: The Competition Commission on Wednesday imposed a total fine of more than Rs 54 crore on Jet Airways, InterGlobe Aviation and SpiceJet for unfair business practices with respect to fixing fuel surcharge on cargo transport.

Besides, the watchdog has directed the three airlines to "cease and desist" from anti-competitive practices.

Representational image. Reuters

Representational image. Reuters

A fine of Rs 39.81 crore has been imposed on Jet Airways while the penalties on InterGlobe Aviation and SpiceJet are Rs 9.45 crore and Rs 5.10 crore, respectively, according to an official release.

InterGlobe Aviation is the parent of no-frills IndiGo.

The Competition Commission of India (CCI) said penalties have been imposed on the airlines for "concerted action in fixing and revising Fuel Surcharge (FSC) - a component of freight charges".

The order has come on a complaint filed by Express Industry Council of India against the airlines alleging cartelisation.

According to the regulator, the airlines acted in a concerted manner in fixing and revising the FSC rates in violation of competition norms that prohibit anti-competitive agreements, including cartels.

"Considering the financial position of airlines at the relevant time and noting that FSC constitutes about 20-30 percent of cargo revenue, penalty was imposed by the Commission at the rate of 3 percent of their average relevant turnover of the last three financial years," the release said.

The final ruling has been passed pursuant to the directions issued by the erstwhile Competition Appellate Tribunal which had remanded the matter back while setting aside the CCI's original order, it added.

Updated Date: Mar 07, 2018 19:42 PM

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