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CCI penalises Jet, IndiGo, SpiceJet Rs 540 mn for unfair business practices

The penalty levied on Jet Airways is Rs 398.1 million, IndiGo was fined Rs 94.5 million and SpiceJet Rs 51 million

Veena Mani 

IndiGo

The Competition Commission of India (CCI) has imposed a penalty of over Rs 540 million on Jet Airways, and for fixing fuel surcharge. The penalty levied on is Rs 398.1 million, was fined Rs 94.5 million and Rs 51 million. The acted on a cartelisation complaint by Express Industry Council of India against Jet, IndiGo, SpiceJet, and “Considering the financial position of the airlines and noting that fuel surcharge constitutes 20-30 per cent of cargo revenue, penalty was imposed by the at 3 per cent of their average relevant turnover of the last three financial years,” the said. During hearings with the CCI, the airlines said there was only one instance where four players changed the fuel surcharge at the same time. They also justified the movement in fuel surcharge by linking it with increase in aviation turbine fuel prices. None of the airlines responded till the time the story went to press.

Last time these airlines were penalised by the CCI, the airlines appealed at the Competition Appellate Tribunal (Compat). The Compat had asked the to reinvestigate the case as it felt that the commission had failed to cite reasons for disagreement with DG report and did not give the airlines an effective opportunity to the airline to show that they had not formed any cartel for jacking up fuel surcharge from time to time.

CCI, Jet Airways, IndiGo, SpiceJet, Air India, GoAir
In November 2015, the had imposed a penalty of Rs.151.69 crore on Jet Airways, Rs 63.74 crore on and Rs 42.48 crore on for cartelization. The fine corresponded to 1% of the annual revenue of the This time, the penalty has been brought down as the commission has considered only the relevant turnover.

First Published: Thu, March 08 2018. 02:13 IST
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