Malaysian Airlines No13 on ACCC’s list of air cargo price-fixers

By on Apr 14, 2010

The Australian Competition & Consumer Commission (ACCC) has instituted proceedings in the Federal Court against Malaysian Airline System and its cargo subsidiary Malaysia Airlines Cargo

Malaysian Airline System is the thirteenth airline to be the subject of ACCC proceedings for alleged price fixing in the air cargo industry

The ACCC alleges that, between 2001 and 2006, Malaysian Airline System and Malaysia Airlines Cargo entered into arrangements or understandings with other international air cargo carriers that had the purpose or effect of fixing the price of a fuel surcharge and a security surcharge that were applied to air cargo carried by them and other airlines

The ACCC alleges that arrangements or understandings were reached in Indonesia and Hong Kong for fuel surcharges applied to cargo originating in those countries The ACCC also alleges arrangements or understandings were reached in Indonesia, Hong Kong and Singapore for a security surcharge applied to cargo originating in those countries

The ACCC is seeking declarations, injunctive relief, pecuniary penalties, and costs

A directions hearing has been set down for April 22nd in the Federal Court, Sydney

The ACCC also instituted proceedings in the Federal Court against Korean Air Lines in March, alleging that arrangements or understandings were reached in Korea, Indonesia and Hong Kong for surcharges applied to cargo originating in those countries and in Indonesia for a customs fee applied to cargo originating in that country

A directions hearing was set down for April 1st in the Federal Court, Sydney

To date, proceedings in respect of this air cargo cartel have been concluded against six international airlines with the Federal Court imposing penalties totalling $41 million:

In December 2008, the Federal Court ordered Qantas Airways and British Airways to pay penalties of A$20 million and A$5 million respectively

In February 2009, the Federal Court ordered Air France and KLM to pay A$3 million each, and Martinair and Cargolux to pay A$5 million each

The ACCC has also instituted proceedings in the Federal Court against Singapore Airlines Cargo, Cathay Pacific Airways, Emirates, PT Garuda Indonesia, and Thai Airways, and investigations into other airlines continues