CCI fines Jet Airways, IndiGo, SpiceJet for unfair business practices
CCI says penalties have been imposed on the airlines for concerted action in fixing and revising fuel surcharge (FSC)—a component of freight charges.
The Competition Commission of India (CCI) recently 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. 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. 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 per cent of cargo revenue, penalty was imposed by the Commission at the rate of 3 per cent 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.
You might also like
Volotea offers flights from Munich to Montpellier and Zaragoza
The Spanish airline, Volotea now operates two weekly flights with a Boeing 717 from Munich to Montpellier in the south of France and to Zaragoza in north-eastern Spain. The Montpellier service
Scouting Luxe Lairs – Inside Coco Bodu Hithi, Maldives
Few places on earth blur the line between Earth and otherworldly like the Maldives does. And for Maldivophiles (yes, it’s a gargantuan pack, and growing!) looking to delve deeper into this compelling
Air India looks to vacate unused space at airports and save on rentals
Air India plans to vacate unused hangar space at some airports and sell the scrap lying there to cut costs, CMD Rajiv Bansal has said. After taking over the reins
