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You are here: Home Archive 2009 October 29 ACCC now has Thai Airways in its sights

ACCC now has Thai Airways in its sights

by Rob McKay last modified Oct 29, 2009 11:37 AM

The international aircargo price-fixing scandal has led the Australian Competition and Consumer Commission to the door of Thai Airways International, with Federal Court proceedings against the airline being launched today.

The ACCC will allege that arrangements or understandings were reached in Singapore, Indonesia and Hong Kong – along with Thailand in the case of a security fee described as a "crisis surcharge" – for surcharges applied to cargo originating in those countries.

The ACCC is seeking declarations, injunctive relief, pecuniary penalties and costs in the case.

Thai Airways is the 11th carrier tackled by the ACCC on the issue which has so far resulted in penalties of $41m against several airlines.

Andrew Hudson, a partner at law firm Hunt and Hunt, said the ACCC had built a strong position when dealing with international airlines and their transactions as the prosecutions have unfolded.

"The Federal Court has already imposed penalties on a number of airlines, including Qantas following action by the ACCC although there are still actions outstanding against others, such as Singapore Airlines Cargo, Cathay Pacific, Emirates and Garuda," Mr Hudson said.

"The ACCC has been successful at both levels of the Federal Court in actions defending its rights to issue notices seeking documents and information – even though the offending arrangements were entered into overseas – on the basis that the arrangements had an impact on freight into and out of Australia.

"The expansion of the ACCC action is taking place at the same time when stories are coming out of the EU that actions there by the European Commission may, in fact, be narrowed.

"These ACCC actions are separate to class actions being brought against airlines for damages for those affected by alleged price fixing activity."





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