The Competition Commission of India (CCI) has imposed penalties totalling upto Rs 2.58 billion upon Jet irways, InterGlobe Aviation (Indigo) & Spice Jet for concerted action in fixing and revising fuel surcharge (FSC) for transporting cargo.

Individually, CCI has imposed Rs 1.52 billion penalty on Jet Airways, Rs. 637.4 million on Indigo and Rs. 424.8 million on Spice Jet for the impugned conduct which was found to be in contravention of the provisions of section 3(1) read with section 3(3)(a) of the Act. Besides, cease and desist order was also issued against these airlines.

The final order was passed by CCI today in a matter which was filed by Express Industry Council of India under section 19(1)(a) of the Competition Act, 2002 against Jet Airways, InterGlobe Aviation, Spice Jet, Air India and Go Airlines.

CCI said, 'These airlines acted in parallel in collusion in fixing FSC rates. 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.'

'However, no penalty was imposed upon Air India as its conduct was not found to be parallel with other airlines. Similarly, no penalty was imposed upon Go Airlines as it gave its cargo belly space to third party vendors with no control on any part of commercial and economic aspects of cargo operations done by vendors including imposition of FSC,' it added.

While imposing penalties, CCI noted that such conduct in the air cargo industry undermines economic development of the country and ultimately acts to the detriment of end-consumers. However, considering the precarious financial position of these airlines, the penalty was imposed at 1% of their average turnover of the last three financial years.