OFT price-fixing probe

[BC Tam 2]

Virgin and Cathay face OFT price-fixing probe

 

Rival airlines Virgin Atlantic and Cathay Pacific are being investigated by the Office of Fair Trading (OFT) over price-fixing allegations.

 

It is alleged that the two companies co-operated over pricing strategies on their London to Hong Kong routes, the OFT said.

 

If true, the airlines would be in breach of competition law.

 

Virgin Atlantic said it planned to "robustly defend itself" against the allegations.

 

Cathay Pacific will be immune from any penalties, however, as it brought the matter to the OFT's attention in the first place.

 

Under the OFT's leniency policy, companies involved in price fixing or other cartel activities can gain immunity by coming to the OFT first.

 

Chance to respond

 

It is alleged that employees at the two airlines were in contact with each other over a number of years and exchanged "commercially sensitive information" about the pricing of passenger fares.

 

Ali Nikpay, the OFT's senior director of cartels and criminal enforcement, said that Virgin Atlantic and Cathay Pacific would now have the chance to respond to the allegations before it was decided whether the law had been broken.

 

Virgin Atlantic said it did "not believe that it has acted in any way contrary to the interests of consumers" and intended to "robustly defend itself against these allegations".

 

It also pointed out that the allegations were historical, dating from 2002 to 2006.

 

from the BBC

 

So, this is what it has come down to already eh ?

Ratting on your bedfellow to save one's own hide

[Ja Singh 2]

The Australian Competition and Consumer Commission (ACCC) is taking Malaysia Airlines and its cargo subsidiary to court later this month, alleging price fixing.

 

Malaysia Airlines has become the 13th carrier to be taken to court by the ACCC for alleged cartel behavior.

 

The commission claims that between 2001 and 2006, Malaysia Airlines Cargo “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 them and other airlines”.

 

In addition the ACCC says that the airline reached “understandings” in Indonesia and Hong Kong to apply fuel surcharges for originating cargo and to apply a security surcharge for similar traffic from HongKong, Singapore and Indonesia.

 

The ACCC wants the court to award penalties and costs against the airline.

 

In addition to earlier fines totaling $38 million on other airlines, the commission so far has filed similar allegations relating to Singapore Airlines Cargo, Cathay Pacific, Emirates, Garuda Indonesia, Thai Airways International and Korean Air Lines.

 

 

AUSTRALIA;s WAY OF MAKING $$$ FROM AVIATION. <_>