Airlines to challenge competition watchdog fine

A penalty of Rs 151.7 cr was imposed on Jet Airways, while that on InterGlobe Aviation and SpiceJet were Rs 63.7 cr and Rs 42.5 cr, respectively

Jet Airways, IndiGo and SpiceJet on Wednesday said they would pursue legal steps against the Competition Commission of India (CCI) order imposing combined penalties of Rs 258 crore on them for anti-competitive practices on air cargo.

CCI on Tuesday had penalised the three for cartelisation in determining the fuel surcharge on air cargo.

A fine of Rs 151.7 crore was imposed on Jet, while that on InterGlobe Aviation and SpiceJet were Rs 63.7 crore and Rs 42.5 crore, respectively. InterGlobe runs no-frills carrier IndiGo.

“Jet believes it is not in contravention of the Competition Act and shall pursue all available legal steps to defend its position,” the carrier said in a regulatory filing.

In a separate filing, InterGlobe Aviation said the company was studying the order and would legally challenge it.

“The company has been legally advised that it is not in contravention of the Competition Act, 2002,” it noted.

SpiceJet in a filing said, “The company is examining the order and shall be taking such steps, including challenging the order as deemed necessary.”

CCI’s ruling came on a complaint by the Express Industry Council of India, alleging collusion in levy of fuel surcharge on transport of cargo against five airlines. However, CCI did not penalise the two other carriers, Air India and GoAir.

According to Jet Airways, the investigation carried out by CCI’s joint director general (DG), an investigation arm of CCI, concluded that the allegations levelled against the airlines were not proved.

However, the Commission, pursuant to the objections filed by EICI, has held otherwise and imposed a penalty on the company and two other airlines, it added.

SpiceJet also noted that investigation by the DG concluded that the airlines did not indulge in anti-competitive activities..