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Oct 28, 2009
Thai Air accused of price-fixing


Australia's competition watchdog Wednesday began legal action against Thai Airways, accusing the carrier of price-fixing in its air cargo division. --PHOTO: AFP

SYDNEY - AUSTRALIA'S competition watchdog Wednesday began legal action against Thai Airways, accusing the carrier of price-fixing in its air cargo division. The Australian Competition and Consumer Commission (ACCC) alleges Thai Airways colluded with other international airlines between 2001 and 2006 to effectively fix the price of fuel and security surcharges. 'The ACCC alleges that the arrangements or understandings were reached in Singapore, Indonesia and Hong Kong - plus Thailand in the case of a security surcharge called a crisis surcharge - for surcharges applied to cargo originating in those countries,' it said in a statement. The carrier is the eleventh to be pursued by the ACCC in the Federal Court over the alleged cartel activity, which has so far resulted in airlines being ordered to pay A$41 million (S$52 million) in penalties. In February this year the court ordered Societe Air France, Koninklijke Luchtvaart Maatschappij NV, Martinair Holland NV and Cargolux International Airlines SA to pay penalties totalling A$16 million. The ACCC has also instituted proceedings against Singapore Airlines Cargo, Cathay Pacific Airways, Emirates and PT Garuda Indonesia Ltd. 'The ACCC continues to investigate other airlines with the assistance of cooperating parties, and further actions are expected during the next few months,' it said. -- AFP