March 7, 2018 / 1:08 PM / Updated 2 hours ago

Jet Airways, IndiGo, SpiceJet fined for fuel surcharge cartel

NEW DELHI (Reuters) - India’s competition watchdog on Wednesday fined InterGlobe Airlines, Jet Airways and SpiceJet Ltd, saying the carriers had colluded in fixing and revising fuel surcharge rates on cargo flights.

An IndiGo Airlines aircraft prepares to land as a man paddles his cycle rickshaw in Ahmedabad, India, October 26, 2015. REUTERS/Amit Dave/Files

The Competition Commission of India (CCI) levied a penalty of 398 million rupees ($6.13 million) on Jet Airways, 94.5 million rupees on InterGlobe and 51 million rupees on SpiceJet, it said in a statement.

The CCI noted in its order that “the airlines acted in a concerted manner” in fixing and revising the fuel surcharge rates, which are a component of freight charges.

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The anti-trust watchdog criticised the airlines for using fuel surcharge as a pricing tool which was essentially introduced to mitigate the fuel price volatility.

Jet Airways, IndiGo Airlines, owned by InterGlobe, and SpiceJet did not immediately respond to an email seeking comment.

In 2015, the three airlines were penalised by CCI for the same issue.

($1 = 64.8800 Indian rupees)

Reporting by Aditi Shah, editing by David Evans