Rs 258 cr penalty imposed on Jet Airways, InterGlobe, SpiceJet: All you need to know in 5 points

By: | Updated: November 19, 2015 5:13 PM

On Tuesday, in response to a case filed by Express Industry Council of India against Jet Airways, InterGlobe Aviation, SpiceJet, Air India and GoAir, CCI imposed huge penalty, but spared the other two. Here is all you wanted to know in 5 points:

Jet Airways, InterGlobe Aviation (Indigo), SpiceJet, Air India and GoAir were put under scanner by CCI for entering into anti-competitive agreements and the fair practices regulator imposed a huge penalty of Rs 258 cr, but spared the later two – this happened on Tuesday in response to a case filed by Express Industry Council of India. Here is all you wanted to know in 5 points:

1. The CCI imposed penalties amounting to Rs.151.69 crore, Rs.63.74 crore and Rs.42.48 crore on Jet Airways, InterGlobe Aviation and SpiceJet, respectively.

2. “Commission noted that the airlines acted in collusion in fixing FSC rates. Such conduct was found to have resulted in indirectly determining the rates of air cargo transport,” the CCI was quoted in a statement.

3. “No penalty, however, was imposed upon Air India, as its conduct was not found to be parallel with other airlines. Similarly, no penalty was imposed upon Go Airlines, as it gave its cargo belly space to third party vendors with no control on any part of commercial aspects of cargo operations done by vendors including imposition of FSC,” the statement said.

4. The CCI noted that such conduct in the air cargo industry undermines economic development of the country and ultimately acts as a detriment to end consumers – the passengers.

5. The CCI said it imposed modest penalties on the airlines, considering their weak economic position. “Considering the precarious financial position of airlines, the penalty was imposed by the commission at the rate of one percent of their average turnover of the last three financial years,” the statement added.

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