Jet, Indigo, and Spicejet face “Unfair Business Practices” Charge

After performing spectacularly in the Equity Market till now, three aviation Companies -Indigo, Jet and Spicejet face a dampener. Clamping down on unfair business practices in the aviation sector, Competition Commission of India (CCI) had yesterday penalized three airlines for cartelisation in determining the fuel surcharge on air cargo. 

The fair trade regulator’s order comes after the apex industry body of express companies, Express Industry Council of India (EICI) filed a complaint against five airlines, including state-owned Air India (AI) and Go Airways, under Section 19(1)(a) of the Competition Act.

A penalty of 151.69 crore was imposed on Jet Airways, 
on InterGlobe Aviation Rs 63.74 crore and 
on SpiceJet Rs 42.48 crore.

Jet Airways, IndiGo and SpiceJet have stated separately  that they would pursue legal steps against this CCI order.

“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.

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