Aviation stocks: SpiceJet, InterGlobe rise, Jet Airways slumps

Mumbai: Stocks of SpiceJet and InterGlobe Aviation ended the day with gains, while Jet Airways closed in the negative zone amid high volatility after CCI slapped penalties on them for cartelisation, even as the airlines said they will oppose the order.

At the end of today's trading session, shares of SpiceJet quoted at Rs 52.55, up 9.48 percent, while InterGlobe Aviation ended the day at Rs 1,044.40, up 0.90 percent over its previous closing on the BSE.

Meanwhile, Jet Airways finished at Rs 416, down 2.95 percent on the BSE.

Clamping down on unfair business practices in the aviation sector, Competition Commission of India (CCI) yesterday penalised the three airlines for cartelisation in determining the fuel surcharge on air cargo.

The three airlines today said they would pursue legal steps against the order.

On the volume front, a total of 12.26 lakh Jet Airways shares exchanged hands on BSE, while 396.23 lakh SpiceJet shares were traded. At the InterGlobe Aviation counter, 7.92 lakh shares were traded.

A penalty of Rs 151.69 crore was imposed on Jet Airways, while InterGlobe Aviation was fined Rs 63.74 crore and SpiceJet was ordered to pay Rs 42.48 crore.

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.