Indian airlines plan to challenge price fixing fines
A trio of major Indian airlines plan to challenge a ruling after they were hit with large fines for price fixing.
SpiceJet says it will likely appeal the penalty handed down by the Competition Commission of India after officials said the three airlines operated a cartel and colluded to fix fuel surcharge rates on flights transporting cargo.
The CCI handed down fines of US$785,000 to Spicejet while Jet Airways and IndiGo parent InterGlobe Aviation were fined US$6.1 million and US$1.4 million respectively.
The CCI based the penalties on revenues earned by the airlines from cargo charges.
The CCI said the airlines used PSC as a pricing tool rather than a fee to guard against fluctuating furl prices, and when fuel prices dropped, the FSC continued to rise in unison.
"The company is examining the order of the CCI and shall be taking such steps, including challenging the order in the appropriate forum as may be advised and deemed necessary," a statement from Spicejet said.
Jet Airways also said it would ‘pursue all available legal steps to defend its position.’
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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