ACCC institutes proceedings against PT Garuda Indonesia

PT Garuda is the tenth airline to be the subject of ACCC proceedings for alleged price fixing in the air cargo industry.

The ACCC alleges that between 2001 and 2006, PT Garuda Indonesia Ltd entered into arrangements or understandings with other international air cargo carriers that had the purpose or effect of fixing the price of a fuel surcharge and a security surcharge that were applied to air cargo carried by PT Garuda Indonesia Ltd and other airlines. The ACCC alleges that the arrangements or understandings were reached in Indonesia and Hong Kong.

The ACCC is seeking declarations, injunctive relief, pecuniary penalties, and costs.

A directions hearing has been set down for October 22 before Justice Jacobson in the Federal Court, Sydney.

As a result of the ACCC's continued investigation into alleged fuel surcharge price fixing in the industry, to date the court has ordered a total of $41 million in penalties against respondent airlines:

• On December 11 2008, the court ordered Qantas Airways Limited and British Airways PLC to pay penalties of $20 million and $5 million respectively, as jointly submitted by the parties
• On February 16 2009 the court ordered Société Air France, Koninklijke Luchtvaart Maatschappij NV, Martinair Holland NV and Cargolux International Airlines SA to pay penalties of $3 million, $3 million, $5 million and $5 million respectively, as jointly submitted by the parties.

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

• on December 23 2008 against Singapore Airlines Cargo Pte Ltd
• on April 30 2009 against Cathay Pacific Airways Ltd
• on August 18 2009 against Emirates.

Proceedings against Singapore Airlines Cargo Pte Ltd, Cathay Pacific Airways Ltd and Emirates continue.

The ACCC continues to investigate other airlines with the assistance of cooperating parties, and further actions are expected during the next few months.