More Cargo Price Fixing
Australia accuses Emirates of cargo price-fixing
SYDNEY, Aug 18, 2009 (AFP) - Australia Tuesday launched legal action against airline Emirates for alleged cargo industry price-fixing, extending a campaign which has netted several carriers and tens of millions of dollars in fines.
The Australian Competition and Consumer Commission (ACCC) said the Dubai carrier had colluded with other airlines to fix cargo and other rates, adding that it was seeking financial penalties.
"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," it said in a statement.
"The ACCC alleges that the arrangements or understandings were reached in countries including Singapore, Indonesia, Hong Kong, United Arab Emirates and India."
Emirates denied the accusations and said it would defend its position in court. The hearing is scheduled for September 11 in Sydney.
"Emirates denies the allegations and will be defending the proceedings,"
the airline said in a statement to Dow Jones Newswires.
Emirates "does not intend to make any further comment given that the matter is before the Court", it said.
Since December the ACCC has successfully accused several airlines of fuel surcharge price-fixing, winning fines of 20 million dollars (16.4 million US) and five million dollars from Qantas and British Airways respectively.
Air France and KLM -- which have now merged -- Martinair and Cargolux were ordered to pay a total of 21 million dollars in separate proceedings, while cases are still being heard against Singapore Airlines and Cathay Pacific.
Neighbouring New Zealand has accused 13 airlines of forming an air cargo cartel and similar action has also been taken in the United States.
Source : AFP