Tuesday, August 18, 2009

Emirates in Court for Price Fixing

Australian commission brings court action
Shipping News Feature

AUSTRALIA - As a result of its continued investigation into alleged price fixing in the air cargo industry, the Australian Competition and Consumer Commission (ACCC) today instituted proceedings in the Federal Court against Emirates Airways.

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.

A directions hearing has been set down for September 11 2009 at 9:30 a.m. in the Federal Court in Sydney.

Emirates are the ninth airline to be the subject of ACCC proceedings for fuel surcharge price fixing. On December 11 2008, the Federal Court ordered Qantas Airways and British Airways to pay penalties of $20 million and $5 million respectively, as jointly submitted by the parties.

On February 16 2009, the Federal Court ordered the following companies to pay penalties as jointly submitted by the parties: Air France ($3m); KLM ($3m); Martinair ($5m) and Cargolux International Airlines SA ($5m).

In addition, the ACCC instituted proceedings in the Federal Court:

* on December 23 2008 against Singapore Airlines Cargo.

* on April 30 2009 against Cathay Pacific Airways.

The proceedings against Singapore Airlines Cargo Pte Ltd and Cathay Pacific Airways Ltd are ongoing.