MASkargo fined USD6m for price fixing cartel

Malaysia Airlines Cargo Sdn Bhd (MASkargo) was fined (14-Jun-2012) AUD6 million (USD6 million) by the Australian Federal Court for price fixing as part of a cartel following action by the Australian Competition and Consumer Commission (ACCC). The ACCC instituted proceedings against MASkargo on 09-Apr-2010, alleging it reached and gave effect to understandings with other international airlines regarding the level of particular surcharges and fees relating to air freight carriage from Indonesia. MASkargo has admitted it did so in relation to:

• Fuel surcharges between Apr-2002 and Sep-2005;
• Security surcharges between Oct-2001 and Oct-2005, and;
• Customs fees between May-2004 and Oct-2005.

Since the time of the events relating to the admissions, Malaysian Airline System Berhad (MAS) and MASkargo have revised their competition compliance policies and training to prevent any conduct that might be alleged to be in breach of any competition laws. Justice Emmett also made orders restraining Malaysia Airlines Cargo from engaging in similar conduct for a period of five years and to pay AUD500,000 (USD500,438) towards the ACCC's costs. [more - original PR - ACCC] [more - original PR - MAS]