Shares of Jet Airways, IndiGo and SpiceJet saw high volatility on Wednesday morning after the CCI slapped on them penalties totalling Rs. 258 crore even as they said they will pursue legal steps against the order.
Clamping down on unfair business practices in the aviation sector, Competition Commission of India (CCI) had on Tuesday penalised the three airlines for cartelisation in determining the fuel surcharge on air cargo.
The three airlines said on Wednesday they would pursue legal steps against the order.
Reacting to the development shares of InterGlobe Aviation opened at Rs. 1021, and touched a 52-week high value of Rs. 1,059.20 and also saw a low of Rs. 1,015 on the BSE.
Similarly, SpiceJet touched an intra-day high of Rs. 52.65 and a low of Rs. 46.25. Jet Airways saw a high of Rs. 428 and a low of Rs. 410.25.
A penalty of Rs. 151.69 crore was imposed on Jet Airways.
On InterGlobe Aviation and SpiceJet it is Rs. 63.74 crore and Rs. 42.48 crore respectively. InterGlobe runs no-frills carrier IndiGo.
“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,” the carrier said in a regulatory filing.
In a separate filing, InterGlobe Aviation said the company is studying the CCI order and would take legal steps to challenge it in the appropriate forum. “The company has been legally advised that it is not in contravention of the provisions of the Competition Act, 2002,” it noted.
SpiceJet also said it would take steps, including challenging the order, after examining it.