Shares of Jet Airways, IndiGo and SpiceJet saw high volatility on Wednesday after the CCI slapped on them penalties totalling Rs 258 crore even as they said they will pursue legal steps against the order.
Shares of aviation companies opened on a weak note on Wednesday. Jet Airways, IndiGo and SpiceJet opened 2.95 per cent, 1.30 per cent and 1.25 per cent down at Rs 416, Rs 47.40 and Rs 1021, respectively.
While a penalty of Rs 151.69 crore has been imposed on Jet Airways, the fines slapped on InterGlobe and SpiceJet are Rs 63.74 crore and Rs 42.48 crore, respectively.
However, Shares of airline companies recovered after Jet Airways, IndiGo and SpiceJet said they would pursue legal steps against CCI order imposing penalties totalling Rs 258 crore on them for anti-competitive practices related to air cargo.
At 11.44 am, shares of Jet Airways were trading 0.78 per cent down at Rs 425.30 apiece. On the other hand, SpiceJet and InterGlobe Aviation shares wiped off their initial losses and were trading 8.33 per cent and 1.09 per cent up at Rs 52 and Rs 1,046.40, respectively.
Later, the share price of Jet Airways closed 2.95 per cent down at Rs 416. SpiceJet and Indigo gained 9.48 per cent and 0.90 to Rs 52.55 and 1,044.40.
InterGlobe Aviation operates no-frills carrier IndiGo.
The ruling has come on a complaint filed by Express Industry Council of India, which alleged that the five airlines indulged in anti-competitive practices.
According to CCI, such anti-competitive ways in the air cargo industry undermines economic development of the country and ultimately acts to the detriment of end-consumers.
(With inputs from PTI)