Air Freight Industry Price Fixing Inquiry Gathers Pace
The inquiry into price-fixing within the air freight industry has now transformed into the most expansive and wide-reaching anti-cartel probe on a global basis. It now involves the participation of regulatory bodies and other agencies from Asia, Australia, Europe, New Zealand and the US, and focuses on the activities of 30 air freight carriers.
Legal companies in North America, Europe, Australia and Tanzania are preparing representative actions against the extortionate charges it is claimed that the airlines have been imposing on import/export firms since 2000.
Fuel Charges At Centre of Air Freight Price Fixing Claims
The claims refer both to the establishment of fuel surcharges seven years ago, and, further down the line, the creation of charges in respect of security in the aftermath of 9/11.
The Australian airline Qantas' confession to the US Department of Justice, in which it admitted it was guilty, followed this summer's fine on British Airways, after it confessed to having fixed fuel charges on both freight and passenger services. The fine was imposed in the UK by the Office of Fair Trading, the chairman of which said, at the time, it would "send an important message to corporate boards and business leaders about our intention to enforce the law, and (serve) to remind companies of the substantial risks involved if they are found to engage in such behaviour".
Qantas now stands to be faced with a $200m class action, together with six further national carriers.
Claimed: Price Collusion Involved British Airways, Lufthansa, Qantas and Others
The action that began in January claims that Air New Zealand, British Airways, Cathay Pacific, Lufthansa, Singapore Airlines, Qantas and Japan Airlines worked together to push up charges on air freight in contravention of the law.
It is believed that the Competition and Consumer Commission is contemplating making Qantas pay damages in its home country.
Source - Freight International's European Correspondent
Recent related News Items:
British Airways Price Fixing: Lawsuit is Latest Action
Qantas Reserves $40m Pending Freight Price-Fixing Fine
British Airways Price-Fix Fine Increases
