CCI penalises Jet, IndiGo, SpiceJet for cartelisation

Mar 07, 2018, 21:24 IST | IANS

Fair trade regulator Competition Commission of India (CCI) has imposed penalties on three airlines -- Jet Airways, IndiGo and SpiceJet -- for "concerted action in fixing and revising Fuel Surcharge (FSC)

Jet Airways

Fair trade regulator Competition Commission of India (CCI) has imposed penalties on three airlines -- Jet Airways, IndiGo and SpiceJet -- for "concerted action in fixing and revising Fuel Surcharge (FSC) - a component of freight charges", according to a Corporate Affairs Ministry release here on Wednesday.

The Ministry said the CCI passed the final order on Wednesday based on "information" filed by the Express Industry Council of India against Jet Airways, InterGlobe Aviation, SpiceJet, Air India and GoAir alleging "cartelisation".

"The CCI deprecated the airlines for using FSC as a pricing tool which was essentially introduced to mitigate the fuel price volatility," the statement said.

The airlines have been fined a total of Rs 54.36 crore.

Penalties worth Rs 39.81 crore, Rs 9.45 crore and Rs 5.10 crore have been imposed on Jet Airways, InterGlobe Aviation and SpiceJet, respectively, it said.

The Ministry also clarified that the CCI applied the principle of relevant turnover and based the penalties on the revenue generated by the airlines from air cargo transport services only.

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