50 SKY SHADES - World aviation news

India Fines Three Carriers US$38 Million for Cartel-Like Activities

Download: Printable PDF Date: 25 Nov 2015 05:17 (UTC) category:
Publisher:
India Fines Three Carriers US$38 Million for Cartel-Like Activities - Airlines publisher
Tatjana Obrazcova
Country: India Aircraft: Airplanes
Source: CH Aviation

The Competition Commission of India (CCI) has found three local carriers guilty of colluding to artificially manipulate fuel Surcharge (FSC) fees relating to cargo and freight. The motion was brought on by a complaint filed by the Express Industry Council of India.

The CCI said in a statement that Jet Airways (India) Ltd. had been fined 1.5 billion rupees (US$22.69 million), IndiGo Airlines parent InterGlobe Aviation Limited 637 million rupees (US$9.64 million), and SpiceJet Ltd 425 million rupees (US$6.43 million) for contravening Section 3 of India's Competition Act, 2002 which deals with anticompetitive practices. The fines represent 1% of each carrier's average turnover for the last three financial years.

"The Commission noted that the Airlines acted in parallel in collusion in fixing FSC rates," it said. "Such conduct was found to have resulted in indirectly determining the rates of air cargo transport and thereby in contravention of the provisions of section 3(1) read with section 3(3)(a) of the Act."

Other carriers named in the investigation -- Air India and GoAir -- were found not guilty.

Air India was found not to have colluded with any other carrier while GoAir's policy of selling belly-hold space to third-party firms exonerated it of any blame given its lack of control over their pricing structures.





Recommended

Flexjet receives first-ever Embraer Praetor 600E as fleet launch customer

Embraer delivered the first Praetor 600E to Flexjet, marking the operator as the launch fleet customer for Embraer’s latest-generation super-midsize business jet. The inaugural aircraft joins Fl...

Star Alliance Paris CDG Lounge remains the World's Best Airline Alliance Lounge

The Star Alliance Lounge at Paris Charles de Gaulle Airport has been named the World’s Best Airline Alliance Lounge at the 2026 Skytrax World Airline Awards, securing the prestigious title for a...

Japan Airlines strengthens E-Jet operations with renewed Embraer Pool Program agreement

Embraer and Japan Airlines have strengthened their long-standing collaboration through a new multi-year agreement under Embraer’s Pool Program, ensuring continued maintenance, repair, and spare-...

RECARO Aircraft Seating marks SAS’ 80th anniversary with exclusive RECARO Gaming NXT chairs

RECARO Aircraft Seating is celebrating the 80th anniversary of Scandinavian Airlines with a unique collection of 80 customized RECARO Gaming Nxt chairs created exclusively for the carrier. Repres...

Android Apps development in Riga, Latvia