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India's CCI imposes US$40m fine on three airlines for fixing fuel surcharge rates
INDIA's fair trade regulator, the Competition Commission of India (CCI) has found Jet Airways, IndiGo and SpiceJet guilty of colluding in fixing fuel surcharge rates for transporting cargo and imposed a fine totalling INR257.91 crore (US$40 million) on the three carriers.
The regulator did not impose any penalty on Air India and GoAir, which were also named in the complaint, as the commission did not find any contraventions against the two, according to media reports.
"Jet Airways is not in contravention of the provisions of the Competition Act and it shall pursue all available legal steps to defend its position," according to The Telegraph of Calcutta quoting a Jet Airways spokesperson.
SpiceJet's corporate affairs general manager Ajay Jasra said: "We are examining the order. We are likely to challenge this verdict."
Indigo, a no-frills carrier operated by InterGlobe Aviation, is yet to respond.
The order was passed in response to a complaint filed by Express Industry Council of India, a body representing companies including Blue Dart, Fedex and DHL, among others.
It was alleged that the five airlines indulged in anti-competitive practices. The grouping said the latest CCI order would deter entities from indulging in unfair business practices.
An official CCI release said: "The CCI has penalised three carriers for concerted action in fixing and revising fuel surcharge for transporting cargo."
These carriers have also been directed to cease and desist from indulging in anti-competitive practices.
The CCI referred the complaint to the director-general for a detailed investigation in September 2013 and the DG submitted the report in February this year.
While the DG did not find evidence of collusion during the course of investigation, it said the behaviour of airlines with respect to the imposition of fuel surcharge (FSC) was not to be in conformity with market conditions where the domestic players were actively competing.
The regulator did not impose any penalty on Air India and GoAir, which were also named in the complaint, as the commission did not find any contraventions against the two, according to media reports.
"Jet Airways is not in contravention of the provisions of the Competition Act and it shall pursue all available legal steps to defend its position," according to The Telegraph of Calcutta quoting a Jet Airways spokesperson.
SpiceJet's corporate affairs general manager Ajay Jasra said: "We are examining the order. We are likely to challenge this verdict."
Indigo, a no-frills carrier operated by InterGlobe Aviation, is yet to respond.
The order was passed in response to a complaint filed by Express Industry Council of India, a body representing companies including Blue Dart, Fedex and DHL, among others.
It was alleged that the five airlines indulged in anti-competitive practices. The grouping said the latest CCI order would deter entities from indulging in unfair business practices.
An official CCI release said: "The CCI has penalised three carriers for concerted action in fixing and revising fuel surcharge for transporting cargo."
These carriers have also been directed to cease and desist from indulging in anti-competitive practices.
The CCI referred the complaint to the director-general for a detailed investigation in September 2013 and the DG submitted the report in February this year.
While the DG did not find evidence of collusion during the course of investigation, it said the behaviour of airlines with respect to the imposition of fuel surcharge (FSC) was not to be in conformity with market conditions where the domestic players were actively competing.
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