NEW DELHI: The Competition Commission of India (CCI) has collectively imposed a fantastic of about Rs 55 crore on three airline — Jet Airways, IndiGo and SpiceJet — for allegedly taking concerted motion in fixing and revising gas surcharge (FSC) — a component of freight fees. The order came on a case filed via Express Industry Council of India towards Jet, InterGlobe Aviation Limited (IndiGo’s mother or father corporate), SpiceJet, Air India and Go Airlines alleging cartelisation.
CCI order says Jet, IndiGo and SpiceJet “acted in a concerted means in fixing and revising the FSC rates and thereby contravened the provisions of Section 3 of the Act which prohibits anti-competitive agreements together with cartels.” Accordingly, consequences of Rs 39.eight crore, Rs 9.five crore and Rs five.1 crore had been imposed upon Jet, IndiGo and SpiceJet, respectively. In addition, a cease and desist order was also issued towards the airlines.
A Jet Airways spokesman said: "Jet Airways is but to obtain any formal verbal exchange from the involved government in regards to the construction and is due to this fact unable to remark on the similar.”
IndiGo and SpiceJet didn't remark on the factor.
While enforcing consequences, the commission applied the main of related turnover and based the consequences on the income generated via the airlines from air cargo transport products and services only. Considering the financial place of airlines on the related time and noting that FSC constitutes about 20-30% of cargo income, penalty was imposed via the commission on the charge of three % of their moderate related turnover of the last three financial years.
The CCI slammed the airlines for the usage of FSC as a pricing instrument which was essentially introduced to mitigate the gas worth volatility.
The commission’s ultimate order came pursuant to the instructions issued via the erstwhile Competition Appellate Tribunal remanding the subject again whilst setting apart the original order of CCI.
CCI order says Jet, IndiGo and SpiceJet “acted in a concerted means in fixing and revising the FSC rates and thereby contravened the provisions of Section 3 of the Act which prohibits anti-competitive agreements together with cartels.” Accordingly, consequences of Rs 39.eight crore, Rs 9.five crore and Rs five.1 crore had been imposed upon Jet, IndiGo and SpiceJet, respectively. In addition, a cease and desist order was also issued towards the airlines.
A Jet Airways spokesman said: "Jet Airways is but to obtain any formal verbal exchange from the involved government in regards to the construction and is due to this fact unable to remark on the similar.”
IndiGo and SpiceJet didn't remark on the factor.
While enforcing consequences, the commission applied the main of related turnover and based the consequences on the income generated via the airlines from air cargo transport products and services only. Considering the financial place of airlines on the related time and noting that FSC constitutes about 20-30% of cargo income, penalty was imposed via the commission on the charge of three % of their moderate related turnover of the last three financial years.
The CCI slammed the airlines for the usage of FSC as a pricing instrument which was essentially introduced to mitigate the gas worth volatility.
The commission’s ultimate order came pursuant to the instructions issued via the erstwhile Competition Appellate Tribunal remanding the subject again whilst setting apart the original order of CCI.
CCI fines Jet, IndiGo, SpiceJet over fuel surcharge levy on cargo transport
![CCI fines Jet, IndiGo, SpiceJet over fuel surcharge levy on cargo transport]()
Reviewed by Kailash
on
March 08, 2018
Rating:
