Jet Airways, InterGlobe Aviation (Indigo) and Spice Jet have decided to challenge CCI's order of Rs 2.58 billion penalty for concerted action in fixing and revising fuel surcharge (FSC) for transporting cargo.

Jet Airways said,"While the investigation carried out by the Joint Director General (Jt. DG), CCI, concluded that the allegations levelled against the airlines were not proved, the Commission, pursuant to the objections filed by EICI, has held otherwise and imposed a penalty on the Company and two other airlines."

"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," it added.

Indigo said, "The company is studying the CCI order and will take legal steps to challenge the order in the appropriate forum. The company has been legally advised that it is not in contravention of the provisions of the Competition Act, 2002."

Spice Jet said, "We would like to clarify that the investigation conducted by the DG in the matter concluded that the airlines did not indulge in anti-competitive activities. 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."

Individually, CCI had 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.

While imposing penalties, CCI also noted that such conduct in the air cargo industry undermines economic development of the country and ultimately acts to the detriment of end-consumers.

Shares of Jet Airways declined Rs 3.35, or 0.78%, to trade at Rs 425.30. The total volume of shares traded was 766,300 at the BSE (12.58 p.m., Wednesday).

Shares of InterGlobe Aviation gained Rs 7.90, or 0.76%, to trade at Rs 1,043.00. The total volume of shares traded was 427,046 at the BSE (12.58 p.m., Wednesday).  

Shares of Spicejet gained Rs 5.70, or 11.88%, to trade at Rs 53.70. The total volume of shares traded was 24,569,535 at the BSE (12.58 p.m., Wednesday).