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ACCC takes Emirates to court for alleged air cargo price fixing


Emirates is the latest in a growing list of airlines accused of air cargo price fixing, with the Australian Competition & Consumer Commission instituting proceedings against the airline in the Australian Federal Court.
 

The ACCC alleges that between 2002 and 2006, Emirates entered into arrangements 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.

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

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

A directions hearing has been set for September 11th in the Federal Court in Sydney.

Emirates is the ninth airline to be the subject of ACCC proceedings for price fixing.

To date, respondent airlines have paid a total of A$41 million in pecuniary penalties:

  • In December last year, 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 proceedings against Singapore Airlines Cargo and Cathay Pacific Airways , instituted in December 2008 and April 2009 respectively, continue.

The ACCC continues to investigate other airlines, and further actions are expected over the next few months.

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