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MAS to pay $6m for cargo cartel

written by australianaviation.com.au | June 15, 2012
photo - Andrew McLaughlin

Malaysia Airlines (MAS) has been the latest airline to be fined for price fixing on certain air freight surcharges after it reached a settlement with the Australian Competition and Consumer Commission in the Federal Court.

The ACCC instigated proceedings against MAS in 2010 alleging that it conspired with other international airlines to set air freight surcharges and fees between October 2001 and October 2005 for air freight from Indonesia. The ACCC has already settled eight other cases, which relate to an IATA set formula for certain air freight and customs charges which was found to constitute cartel behavior.

Under  orders from the Federal Court, MAS will pay a $6m penalty to the ACCC as well as $500,000 in costs and must refrain from engaging in similar conduct for a five year period.

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“This penalty sees the total penalties ordered against this international cartel increase to a record $58 million. These penalties are the highest generated by a single ACCC Investigation,” said ACCC chairman Rod Sims.

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