Jet Airways, IndiGo, SpiceJet to challenge Rs 258-cr fine

SpiceJet also said it would take steps, including challenging the order, after examining it.

Jet Airways, IndiGo and SpiceJet on Wednesday said they would pursue legal steps against CCI order imposing penalties totalling Rs 258 crore (Rs 2.58 billion) on them for anti-competitive practices related to air cargo.

Clamping down on unfair business practices in the aviation sector, Competition Commission of India on Tuesday penalised the three airlines for cartelisation in determining the fuel surcharge on air cargo.

A penalty of Rs 151.69 crore (Rs 1.51 billion) was imposed on Jet Airways, while that on InterGlobe Aviation and SpiceJet are Rs 63.74 crore (Rs 637.4 million) and Rs 42.48 crore (Rs 424.8 million), respectively.

InterGlobe runs no-frills carrier IndiGo. "Jet Airways believes that it is not in contravention of the provisions of the Competition Act and it 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 is studying the CCI order and would take legal steps to challenge it in the appropriate forum.

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

SpiceJet also said it would take steps, including challenging the order, after examining it.

"The company is examining the order and shall be taking such steps, including challenging the order in appropriate forum as may be advised and deemed necessary to defend the company's position," the budget carrier said in a filing.

CCI's ruling came on a complaint filed by Express Industry Council of India alleging collusion in levy of fuel surcharge on transport of cargo against five airlines.

However, the fair trade regulator did not penalise two other carriers -- Air India and GoAir.

According to Jet Airways, while the investigation carried out by CCI's Joint Director General 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 Director General in the matter concluded that the airlines did not indulge in anti-competitive activities.

DG is the investigation arm of CCI.