Relief for Indian cargo carriers in 'overcharging' case

© Abhishek Singh

Three Indian airlines have had their appeal against a fine for overcharging cargo customers allowed. Jet Airways was fined $22.9m, Indigo $9.6m and SpiceJet $6.4m – about 1% of turnover – after an investigation by the Competition Commission of India (CCI). The probe followed a complaint in 2013 by the Express Industry Council of India, representing 29 parcel transport firms. The commission noted: “The airlines acted in parallel in collusion in fixing fuel surcharge rates [FSCs]. Such conduct was found to have resulted in indirectly determining the rates of air cargo transport.”

The airlines had levied uniform FSCs at the same time, and then raised them despite no corresponding increase in fuel prices. The case has now been referred back to the CCI.