Sydney’s Federal Court has penalised Malaysia Airlines Cargo Sdn Bhd $6 million for price fixing as part of a cartel
June 15, 2012
Sydney’s Federal Court has penalised Malaysia Airlines Cargo Sdn Bhd $6 million for price fixing as part of a cartel.
Total penalties ordered against
this specific international cartel have now reached a record $58 million.
They are the highest penalties generated by a single Australian Competition and Consumer Commission (ACCC) investigation.
ACCC Chairman Rod Sims says the watchdog has been pursuing a number of international airlines for cartel conduct relating to the carriage of air freight.
Malaysia Airlines Cargo Sdn Bhd is the ninth airline to settle proceedings against it.
“The ACCC’s focus on stopping cartel conduct has sent a strong message,” Sims says.
“It is crucial for the proper functioning of business in Australia that the ACCC continues to tackle cartel conduct with the full force of the law.
“Cartel conduct is damaging and unlawful because it harms competition and usually inflates prices for consumers.”
The ACCC instigated proceedings against Malaysia Airlines Cargo Sdn Bhd on 9 April 2010, alleging it colluded with other international airlines
on the level of particular surcharges and fees relating to air freight from Indonesia.
Malaysia Airlines Cargo Sdn Bhd admitted this was true in relation to ?fuel surcharges between April 2002 and September 2005, ?security surcharges between October 2001 and October 2005, and?customs fees between May 2004 and October 2005.
Justice Emmett also made orders restraining Malaysia Airlines Cargo Sdn Bhd from engaging in similar conduct for a period of five years and to pay $500,000 towards the ACCC’s costs.
The ACCC’s proceedings against Singapore Airlines, Cathay Pacific, Emirates, Air New Zealand and Thai Airways International continue.
Proceedings against Garuda Indonesia are stayed pending the outcome of an appeal to the High Court.