A PYMNTS Company

India: CCI penalizes Jet, IndiGo, SpiceJet for cartelization

By  |  March 7, 2018

India’s fair trade regulator, the Competition Commission of India (CCI), has imposed penalties on three airlines—Jet Airways, IndiGo and SpiceJet—for “concerted action in fixing and revising Fuel Surcharge, a component of freight charges,”, according to a Corporate Affairs Ministry released on Wednesday, March 7.

The CCI noted in its order that “the airlines acted in a concerted manner” in fixing and revising the fuel surcharge rates, which are a component of freight charges.

The antitrust watchdog criticized the airlines for using fuel surcharge as a pricing tool which was essentially introduced to mitigate the fuel price volatility.

Jet Airways, IndiGo Airlines, owned by InterGlobe, and SpiceJet did not immediately respond to an email seeking comment. In 2015, the three airlines were penalized by CCI for the same issue.

Full Content: Reuters

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.