Australia to sue Thai Airways for alleged price fixing

THE Australian Competition and Consumer Commission has instituted proceedings in the Federal Court in Sydney against Thai Airways International Public Company Limited with preliminary hearings set for November 26.

Thai Airways is the 11th 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, Thai Airways "entered into arrangements or understandings with other international air cargo carriers in specific countries that had the purpose or effect of fixing the price of fuel and security surcharges that were applied to air cargo carried by Thai Airways International Public Company Limited and other airlines," an ACCC statement said.

"The ACCC alleges that the arrangements or understandings were reached in Singapore, Indonesia and Hong Kong, plus Thailand in the case of a security surcharge called a crisis surcharge, for surcharges applied to cargo originating in those countries."

As a result of the ACCC's investigation into fuel surcharge price fixing in the industry, the court has so far ordered a total of A$41 million (US$37.18 million) in penalties against Qantas Airways Limited, British Airways PLC, Air France, Koninklijke Luchtvaart Maatschappij NV, Martinair Holland NV and Cargolux International Airlines SA.

In addition, the ACCC's proceedings against Singapore Airlines Cargo, Cathay Pacific Airways, Emirates and PT Garuda Indonesia are continuing.

(Source: www.Schednet.com)