Cargo Agents Assn. lodge complaint against airlines to CCI for cargo fuel surcharge

Competition Commission of India examining allegation of cartelisation by Mumbai-based Express Industry Council of India against airlines for levy of uniform fuel surcharge on air cargo

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The Competition Commission of India (CCI) is examining a complaint of cartelisation against Jet Airways, SpiceJet, Air India, GoAir and IndiGo, according to an official source. The alleged cartelisation was aimed at levying a uniform fuel surcharge on air cargo, the source added.

The complaint points out while airlines buy fuel from oil marketing companies at different prices, they levy fuel surcharge on cargo operators at a uniform rate as per a Business Standard report.

The complaint was lodged by Mumbai-based Express Industry Council of India, which represented major express courier and cargo companies such as DTDC, Aramex India, Blue Dart, DHL Express, GATI and First Flight, the source said. “We have received a complaint recently against five airline operators, alleging there is a concerted effort by them to levy a uniform rate of fuel surcharge on air cargo, often on the same day. This is affecting the services of cargo companies and their consumers,” the source told Business Standard.

According to official data, last financial year, air cargo traffic in India stood at 2.19 million tonnes (mt). Of this, about 33 per cent was international cargo with foreign carriers with a market share of about 80 per cent. The remaining international cargo was accounted for by the five Indian carriers. Domestic cargo traffic stood at 0.78 mt.

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