ATW Daily News

Australia charges SIA Cargo with price-fixing

Tuesday December 23, 2008

Australian Competition and Consumer Commission yesterday announced that it has "instituted proceedings" in Federal Court against Singapore Airlines Cargo, which it accused of colluding on fuel and security surcharges between 2001 and 2005 on flights to and from Australia. A hearing has been scheduled for Feb. 12. SIA Cargo will "defend allegations. . .that it, and several other airlines, have engaged in cartel conduct," a spokesperson told Reuters. "SIA Cargo is committed to competing successfully and fairly, within the requirements of the relevant competition law in Australia."

The Commission's investigations into similar behavior by Qantas and British Airways have resulted in fines of A$20 million ($13.6 million) and A$5 million respectively (ATWOnline, Dec. 12). "The ACCC continues to investigate other airlines, some of which are assisting voluntarily while others are not. The ACCC expects to be able to finalize its investigations with a number of airlines shortly," Chairman Graeme Samuel said.

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