Australia watchdog sues Singapore Airlines Cargo

[Pieter C. 5]

Australia Watchdog Sues Singapore Airlines Cargo

 

December 22, 2008

Australia's competition watchdog sued the cargo unit of Singapore Airlines on Monday, the third carrier it has prosecuted on allegations they were involved in international price-fixing.

 

The Australian Competition and Consumer Commission has already taken legal action against Qantas Airways and British Airways, extracting fines from both airlines totalling AUD$25 million (USD$17.1 million).

 

"The ACCC continues to investigate other airlines, some of which are assisting voluntarily, while others are not," ACCC Chairman Graeme Samuel said in a statement announcing the new legal action against Singapore Airlines.

 

"The ACCC expects to be able to finalise its investigations with a number of airlines shortly."

 

The commission accused Singapore Airlines Cargo, between 2001 and 2005, of entering into arrangements with other carriers to fix the price of a fuel surcharge and a security surcharge. The watchdog is suing for unspecified penalties and costs.

 

"SIA Cargo will defend allegations by the Australian Competition and Consumer Commission that it, and several other airlines, have engaged in cartel conduct," a spokesman said.

 

"SIA Cargo is committed to competing successfully and fairly, within the requirements of the relevant competition law in Australia. With the matter now before the court, it would be inappropriate for SIA Cargo to comment in any more detail at this stage," the spokesman said.

 

Regulators worldwide have been probing more than 30 airlines over the issue, which erupted in February 2006 when US and European officials raided airlines as part of investigations into the imposition of fuel surcharges in international air cargo.

 

(Reuters)