Malaysia Airlines is the latest international carrier to be fined for its involvement in a price fixing cartel. The Federal Court in Australia has imposed a Aus$6 million penalty on the airlines cargo division. The court found that Malaysia Airlines had been in collusion with other carriers over surcharges related to security, fuel and customs fees.
The Australian Competition and Consumer Commission said that the fines so far collected from airlines involved in cartel activities totalled Aus$58 million. Malaysia joins eight other airlines who have also admitted their involvement.
The other carriers are Air France and KLM, British Airways, Qantas, Korean Air, Japan Airlines, Martinair and Cargolux. ACCC spokesman, Rod Sims, said that the carriers were being sent a message which tells them that cartel conduct will not be permitted. He added that it was damaging to both competition and to the consumer.
Malaysia Airlines admitted that it had been involved in price fixing between the end of 2001 and the end of 2005.
Cases are still being brought against Emirates, Cathay Pacific, Air New Zealand, Singapore Airlines and Thai Airways International. A challenge in the High Court has seen the case against Garuda International suspended for the time being.