Indian airlines have fines for alleged cargo cartel set aside

Jet Airways, SpiceJet and IndiGo have been given the opportunity to have fines levied against them by the Competition Commission of India (CCI) for an alleged air cargo cartel overturned.
Late last year, Jet Airways was fined R1.5bn, IndiGo received a R637.4m penalty and SpiceJet was hit with a R424.8m fine for allegedly fixing air cargo fuel surcharges.
However, India’s Competition Appellate Tribunal (CAT) yesterday (April 18) set aside the fines and told the CCI it must reconsider the decision.
The CAT ruled that the CCI had not given the airlines an opportunity to show that they had “not formed any cartel for jacking-up fuel surcharges”.
The CCI decision last year came after its joint director general issued a report stating there was no evidence the airlines had formed a cartel.
Despite the findings of the joint director general, the CCI decided to issue the fines.
However, the CAT said that as the director general report said there was no evidence of a cartel and the CCI had failed to indicate it disagreed with the report the airlines had not issued a response.
They would have done so if they knew the CCI disagreed with the joint director general’s report.
The CAT said: “If the [CCI] had informed the appellants that it proposes to disagree with the findings and conclusions recorded by the joint director general and given them an opportunity to file objections against the reasons for disagreement and also given them chance of oral hearing, then the latter may have put forwarded various arguments to persuade/convince the CCI that the joint director general had rightly returned a negative finding on the issue of formation of [a] cartel.”
The full findings of the CAT can be found here.

Share this story

Related Topics

Latest asia news

Rhenus opens sustainably-powered warehouse in Gurugram

Rhenus Logistics has opened a new warehouse in Gurugram, India, to support its logistics operations in Asia and Asia-Pacific. The…

Read More

Share this story

HAECO strips out B777 seats for Cathay cargo flights

By Damian Brett

HAECO Xiamen has stripped out seats from Cathay Pacific B777s to increase their cargo capacity. The conversion and maintenance firm…

Read More

Share this story

Emirates SkyCargo marks 30 years of operations in Singapore

By Rachelle Harry

Emirates SkyCargo is celebrating 30 years of operations in Singapore. During this time it has facilitated trade and supported business…

Read More

Share this story