flee 5 Report post Posted June 14, 2012 The Federal Court has slapped a $6 million fine on Malaysia Airlines's air freight business for price fixing as part of an international cartel. The Australian Competition and Consumer Commission (ACCC) says this latest fine brings the total penalties in the case to a record $58 million - the highest of any of its investigations. The competition watchdog says Malaysia Airlines Cargo admitted to making deals with other international airlines on surcharges and fees to deliver freight from Indonesia. The company, which changed its name last year to MASkargo, admitted to fixing prices on fuel surcharges, security surcharges and customs fees between 2001 and 2005, says ACCC chairman Rod Sims. "This penalty sees the total penalties ordered against this international cartel increase to a record $58 million," Mr Sims said. "These penalties are the highest generated by a single ACCC investigation." The ACCC launched proceedings against the company in April 2010. Other airlines involved in the case include Singapore Airlines, Cathay Pacific, Emirates, Air New Zealand, Thai Airways International and Garuda Indonesia. Source: http://www.abc.net.au/news/2012-06-14/malaysia-airlines-cargo-fined-246m-over-price-fixing/4070862 Share this post Link to post Share on other sites
KK Lee 5 Report post Posted June 14, 2012 Served them right :good: Share this post Link to post Share on other sites
BC Tam 2 Report post Posted June 14, 2012 Pure speculation here, but could it be someone did some mathematical homework and concluded it's more cost effective to plead one's presumed guilt and incur the somewhat 'paltry' fine of AUD 6m (MYR 19m) ? 'paltry' as compared to how much additional revenue (estimates only, of course ) would have been generated by participation in alleged cartel, plus litigation costs should they decide to contest the charges Share this post Link to post Share on other sites
Mohd Suhaimi Fariz 2 Report post Posted June 14, 2012 (edited) Pure speculation here, but could it be someone did some mathematical homework and concluded it's more cost effective to plead one's presumed guilt and incur the somewhat 'paltry' fine of AUD 6m (MYR 19m) ? 'paltry' as compared to how much additional revenue (estimates only, of course ) would have been generated by participation in alleged cartel, plus litigation costs should they decide to contest the charges You might be on to something there... Anyways - last year MASkargo was slapped with the same allegation by the US authorities & have proven themselves innocent. And what's wrong with setting the fuel surcharge & fees so that it's similar between all airlines? It's not like the prices are also set - the rates differs so the airlines can still remain competitive without having to bleed themselves dry. Edited June 14, 2012 by Mohd Suhaimi Fariz Share this post Link to post Share on other sites
Radzi 2 Report post Posted June 14, 2012 In many part of the world, price fixing is illegal. Compare that with everyday life here in Malaysia, where price fixing is a fact of life. Even the pasar malam stuff are sold at the same price by almost all the traders. Share this post Link to post Share on other sites
BC Tam 2 Report post Posted June 14, 2012 In many part of the world, price fixing is illegal. Apparently also illegal here from recently Have you noticed some banks have put up notices proclaiming the fees/charges they are charging nowadays is no more 'regulated' by ABM ? Share this post Link to post Share on other sites
Cire 0 Report post Posted June 15, 2012 (edited) Sort of syndicating the specific services, with "members" agreeing to a particular fees to charge irregardless of the level of services rendered. This only promotes sub-standards service level that will some day annoyed the performing carrier having to put up its own company level of services, whereas the poorly operated one still enjoy high fees charges at its sub-standard performance. Edited June 15, 2012 by Cire Share this post Link to post Share on other sites
