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Thai Airways falls foul of ACCC


The Australian Competition & Consumer Commission (ACCC) has instituted proceedings in the Federal Court against Thai Airways International.
 

Thai Airways is the eleventh airline to be hauled into court by the ACCC for alleged price fixing in the air cargo industry.

The ACCC claims that Thai Airways International was involved in price-fixing activities between 2001 and 2006, with arrangements or understandings reached with other airlines in Singapore, Indonesia and Hong Kong, as well as Thailand in the case of a security surcharge called a "crisis surcharge", for surcharges 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 November 26th 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 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 ACCC has also instituted proceedings in the Federal Court against Singapore Airlines Cargo, Cathay Pacific Airways, Emirates and PT Garuda Indonesia continue, and investigations into other airlines continues.

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