CCI order against airlines show entities cannot get away by flouting competition norms

Competition Commission's order against three airlines for anti-competitive practices with regard to fixing of fuel surcharge on cargo transport shows that people cannot get away by flouting the norms, according to a Senior Advocate who appeared for the informant in the case.
On Wednesday, the Competition Commission of India (CCI) imposed a total penalty of more than Rs 54 crore on three airlines -- Jet Airways, InterGlobe Aviation and SpiceJet -- for unfair business practices with respect to fixing fuel surcharge on cargo transport.
The ruling came on a complaint filed by the Express Industry Council of India (EICI).
Senior Advocate J F Pochkhanawalla who appeared for the Council said the order shows that the CCI is pro-active and that people cannot get away by flouting the competition norms.

"It was a David and Goliath situation. I was arrayed against a galaxy of senior advocates and law firms representing the different airlines. But I had facts and law on my side," Pochkhanawalla told PTI.
He was briefed by Ranjit Walia of Walia & Co, New Delhi, who was one of the advocates for the Council.

The complaint was filed in 2013 and the CCI has passed a fresh order in the matter after the first ruling was set aside by the then Competition Appellate Tribunal.
Passing an order on the same complaint for the second time in nearly three years, the CCI has also directed the airlines to "cease and desist" from anti-competitive practices.

The latest quantum of penalties is much lower than what was imposed in 2015 by the regulator on these airlines. At that time, the total fine was over Rs 257 crore.
Following appeals, the November 2015 order was set aside by the erstwhile Competition Appellate Tribunal in April 2016 and the matter was remanded back to the CCI.
In its order on Wednesday, the regulator said the basic concern is the overcharging of cargo freight in the garb of fuel surcharge by the air cargo transport operators which adversely affect consumers beside stifling economic development of the country.