Japan Airlines International Co Ltd (JAL) has been ordered (11-Apr-2011) by the Australian Federal Court in Melbourne to pay a AUD5.5 million (USD5.8 million) penalty for breaching the price fixing provisions of the Trade Practices Act 1974. The matter represents the seventh international airline to settle the Australian Competition and Consumer Commission's (ACCC) air cargo proceedings and brings the total pecuniary penalties ordered in Australia against the illegal cartel to AUD46.5 million (USD48.8 million). Proceedings against Singapore Airlines, Cathay Pacific, Emirates, Korean Air Lines, Air New Zealand and Thai Airways International remain on foot, the ACCC said. The ACCC's proceedings against Garuda and Malaysian Air Lines are stayed pending the outcome of an appeal to the Full Federal Court. [more]
Japan Airlines penalised USD5.8m for cargo price fixing
You may also be interested in the following articles...
Where the A380 flies: Japan and intra-Asia routes decline while Australia & Middle East grow
The A380 is once again under media scrutiny, despite there being no major movement on the type. Comments from Air France and Qantas about not taking further A380s have long been assumed, and it has been apparent that Malaysia Airlines does not even have the need for its A380s. Singapore Airlines not renewing the lease on its first A380 is hardly surprising, and offers no definitive conclusion about the A380 or second-hand market; early A380s had different production and are not as efficient as later models. The lack of movement on the A380neo continues to irk the model's largest customer by far, Emirates, and may not make for a productive relationship as Emirates weighs an A350 or 787 order.
For most, the A380 continues to fly. How and where it flies is changing. Flights to and from the Middle East are becoming more common as Gulf airlines, and mostly Emirates, take delivery of A380s. A further shift to the Middle East is inevitable. In Japan there has been a near exodus of A380s; airlines dropping the type as they moved from Narita to Haneda, which cannot accommodate the A380 during the day, and Singapore Airlines down-gauging. Intra-Asia flying is decreasing – notable given the growth of A380s based in the region. Services by the A380 to Australia are growing, perhaps as it becomes an easy market for airlines to redeploy capacity amid European security concerns and trans-Pacific overcapacity.
Asia aviation outlook: high demand, low fuel, but overcapacity and uncertainty (Brexit) hurt profits
Asian aviation should be experiencing boom times. So why isn't it? The region is unique for alignment of three key factors: low fuel, high demand and geopolitical stability. Yet financially the market is subdued, largely the result of overcapacity at most airlines. There are some special features too: Cathay Pacific and Singapore Airlines' benefit from low fuel prices has been muted by to hedging, currency swings have hurt the financials of Chinese and Korean airlines.
Strategically most airlines in Asia remain confident of long term opportunities but identify short term challenges, starting with overcapacity. The region's growth is above the IATA average, but financial performance is below. Airlines are watching Europe to see if demand has plateaued or will further weaken due to security concerns. Freight – especially important at Northeast Asian airlines – is facing its usual challenges. New consumer electronics – iPhone 7, for example – may deliver a short-term boost, but will not be as high or profitable as it used to be. The collapse of Hanjin container shipping might deliver some relief, but not on the scale of the 2015 US port closure.