Source: AFP Author: 04/30/2009
Subject Concerned: Government Airlines Cargo
Australia's competition watchdog said it was launching legal action against Cathay Pacific, accusing the Hong Kong airline of price-fixing in the cargo market.
The move comes just four months after regulators in New Zealand accused Cathay Pacific of being part of a cartel to set air cargo prices.
The Australian Competition and Consumer Commission (ACCC) said it would seek penalties against Cathay, the eighth airline it had pursued over the price-fixing allegations.
The regulator accused Cathay of reaching agreements with other airlines to fix air cargo surcharges.
It said places where the agreements were reached included Singapore, Indonesia, Hong Kong, the United Arab Emirates, India, Japan and Italy.
The ACCC said it had so far secured fines totalling AU$41 million (US$28.7 million) from airlines over price fixing in the cargo market.
"The ACCC continues to investigate other airlines with the assistance of cooperating parties and further actions are expected over the next few months," it said in a statement.
A preliminary hearing will be held on May 28.
In New Zealand, Cathay is one of 13 airlines accused of colluding to raise air freight prices by imposing fuel surcharges.