Aviation stocks drop up to 4% as CCI slaps Rs 256 crore fine

NEW DELHI: Shares of three airlines fell briefly up to 4 per cent in Wednesday’s trade after reports that competition watchdog CCI imposed a fine of Rs 256 crore on Jet Airways, SpiceJet and InterGlobe Aviation for alleged cartelisation.

Investors feared the hefty fine would send the three listed airlines back into losses.

While Jet Airways has been penalised Rs 151 crore, InterGlobe Aviation and SpiceJet have been told to pay up Rs 63 crore and Rs 42 crore, respectively. That fine amount accounts for 1 per cent of the average turnover that these airlines generated in last three financial years.

Shares of Jet Airways dropped 4.29 per cent hit a low of Rs 410.25 in morning trade, but pared much of the losses as the day progressed.

For minute-by-minute market/stock updates, follow our Twitter handle @ETMarkets

SpiceJet fell 3.64 per cent to Rs 46.25 in initial trade, but recovered as the session progressed. At 9.45 am, the stock was up 0.63 per cent.

Shares of InterGlobe Aviation fell 2 per cent to hit a low of Rs 1,015, but recovered later in the session. This stock was up 0.60 per cent at Rs 1,041.25 around midday.

The competition watchdog has found the airlines guilty of colluding in fixing fuel surcharge for cargo transportation.

“Such conduct was found to have resulted in indirectly determining the rates of air cargo transport, which was in contravention of the Competition Act,” CCI said.

The investigation was carried against Jet Airways, InterGlobe Aviation, SpiceJet, Air India and GoAir. However, the competition watchdog didn’t slap any fine on Air India and GoAir.