Jet Airways, IndiGo and SpiceJet to challenge CCI order – Indian carriers SpiceJet, Jet Airways and IndiGo today said they would pursue legal steps against Competition Commission of India (CCI) order imposing penalties totaling Rs 258 crore on them for anti-competitive practices related to air cargo.
On Tuesday, the CCI had imposed a Rs 151 crore penalty on Jet Airways, Rs 63 crore on IndiGo, and Rs 42 crore on SpiceJet, after it found them guilty of conspiring in fixing of fuel surcharge for cargo transportation.
The carriers have been asked to deposit the penalty within sixty days. The CCI found that whenever fuel surcharge of one airline was increased it was followed by the rest of the airlines simultaneously on many occasions.
In 2013, the matter was brought to CCI by Express Industry Council of India (EICI), an apex body of express transportation companies, alleging anti-competitive agreements between the 3 airlines as well as Air India and Go Air.
Vijay Kumar,chief operating officer of EICI, said “When the fuel prices were volatile the airlines levied fuel surcharge on cargo. But soon they started using it as a tool to rig the market. Even when fuel prices fell, they increased rates, in tandem and acting in concert.”