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Australia accuses Emirates

Aug 24, 2009 Logistics

The Australian Competition and Consumer Commission has filed a suit in the nation's Federal Court against Emirates airlines, as part of the competition regulators' ongoing investigation into alleged price fixing in the air cargo industry, the Shipping Gazette informs.

The allegations are part of a worldwide investigation into an air cargo price-fixing cartel that has netted a number of carriers in Asia, Europe and the United States and tens millions of dollars in fines.
 

"The ACCC alleges that between 2002 and 2006, Emirates entered intoarrangements or understandings with other international air cargo carriers that had the purpose and effect of fixing the price of certain fuel surcharges, security surcharges and rates that were applied to air cargo carried by Emirates and other airlines," an official statement from the ACCC said.

"The ACCC alleges that the arrangements or understandings were reached in countries including Singapore, Indonesia, Hong Kong, United Arab Emirates and India."

Dubai-based Emirates has denied the charges and said it would defend itself in a court hearing on September 11 in Sydney, Australia, reports the Journal of Commerce Online.
Emirates is the ninth airline to be the subject of ACCC proceedings for fuel surcharge price fixing. The Australian Federal Court has assessed charges on six of them. Since December last, the Court has ordered Australia's Qantas Airways Limited to pay A$20 million (US$16.57 million) in penalties, British Airways to pay A$5 million, Air France to pay A$3 million, KLM to pay A$3 million, Martinair to pay A$5 million, and Cargolux to pay A$5 million.

In addition, the ACCC has instituted proceedings in the Australian Federal Court against Singapore Airlines Cargo and Cathay Pacific Airways. The proceedings against these two airlines are ongoing.
The ACCC added it "continues to investigate other airlines with the assistance of cooperating parties, and further actions are expected over the next few months."
 

Source: Transportweekly

 
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