Australian competition bureau sues SIA Cargo for price fixing

THE Australian Competition and Consumer Commission is suing the Singapore Airlines cargo unit, SIA Cargo, for alleged involvement in an international price-fixing scheme, reports Reuters.

SIA Cargo will defend against allegations from the Australian Competition and Consumer Commission that it, and several other airlines, have engaged in cartel conduct, an airline spokesman said.

Qantas Airways and British Airways have already had legal action taken by competition authority that has already taken legal action against them, levying fines of A$25 million (US$17.1 million).

The ACCC continues to investigate other airlines, some of which are assisting voluntarily, while others are not, ACCC chairman Graeme Samuel said in a statement announcing the new legal action against Singapore Airlines.

The ACCC expects to be able to finalise its investigations with a number of airlines shortly, he said.

The commission accused Singapore Airlines Cargo, that between 2001 and 2005, it entered into arrangements with other carriers to fix the price of a fuel surcharge and a security surcharge. The watchdog is suing for unspecified penalties and costs.

SIA Cargo is committed to competing successfully and fairly, within the requirements of the relevant competition law in Australia. With the matter now before the court, it would be inappropriate for SIA Cargo to comment in any more detail at this stage, the spokesman said.

Since February, regulators worldwide have been probing more than 30 airlines over the issue and European officials raided airlines as part of investigations into the imposition of fuel surcharges in international air cargo.

Source: Schednet