ACCC wins cartel case against Thai Airways – A$7.5m
AC220 archive stories
Tuesday, 22 January 2013
THE FEDERAL Court in Sydney, Australia has ordered Thai Airways to pay A$7.5 million in penalties for engaging in cartel conduct in breach of the Trade Practices Act 1974 (now the Competition and Consumer Act 2010).
“The court has now ordered total penalties in Australia of almost A$100 million. The A$7.5 million penalties ordered against Thai Airways have contributed to the highest total penalties resulting from a single ACCC investigation,” said ACCC chairman Rod Sims.
“Thai Airways is the thirteenth international airline to have admitted to engaging in cartel conduct in Australia and to have penalties ordered against it.”
The ACCC’s action against Thai Airways formed part of larger cartel proceedings taken against a number of international airlines. The order against the Thai airline comes just a week after the court ordered Singapore Airlines Cargo Pte Ltd and Cathay Pacific Airways to pay a total of A$23 million in penalties in the same proceedings.
Delivering the judgment, Justice Katzmann said: “Thai accepts that the contraventions were very serious. This was deliberate, systematic conduct involving senior staff at the Thai station in Indonesia. For the understandings to be effective they required the participation of all players in the market including Thai.”
The ACCC commenced proceedings against Thai airlines in 2009, alleging that it engaged in cartel conduct related to fuel and other surcharges. As part of the settlement, Thai Airways has admitted to reaching and giving effect to price fixing understandings related to a fuel surcharge, security surcharge and customs fee for the carriage of freight from Indonesia to Australia.
The court ordered Thai Airways to pay A$7.5 million in penalties and a further A$500,000 in costs, bringing the total penalties ordered in the entire proceedings to A$98.5 million. It also issued an injunction restraining the airline from engaging in similar conduct for a period of five years. Injunctions provide an additional deterrent and reassurance that the likelihood of repeat conduct is reduced as reoffending would constitute both a breach of the Act and contempt of court which carries significant penalties.
The ACCC’s trial against Air New Zealand and Garuda Indonesia is continuing in Sydney.
ACCC wins cartel case against Thai Airways – A$7.5m
AC220 archive stories
Tuesday, 22 January 2013
THE FEDERAL Court in Sydney, Australia has ordered Thai Airways to pay A$7.5 million in penalties for engaging in cartel conduct in breach of the Trade Practices Act 1974 (now the Competition and Consumer Act 2010).
“The court has now ordered total penalties in Australia of almost A$100 million. The A$7.5 million penalties ordered against Thai Airways have contributed to the highest total penalties resulting from a single ACCC investigation,” said ACCC chairman Rod Sims.
“Thai Airways is the thirteenth international airline to have admitted to engaging in cartel conduct in Australia and to have penalties ordered against it.”
The ACCC’s action against Thai Airways formed part of larger cartel proceedings taken against a number of international airlines. The order against the Thai airline comes just a week after the court ordered Singapore Airlines Cargo Pte Ltd and Cathay Pacific Airways to pay a total of A$23 million in penalties in the same proceedings.
Delivering the judgment, Justice Katzmann said: “Thai accepts that the contraventions were very serious. This was deliberate, systematic conduct involving senior staff at the Thai station in Indonesia. For the understandings to be effective they required the participation of all players in the market including Thai.”
The ACCC commenced proceedings against Thai airlines in 2009, alleging that it engaged in cartel conduct related to fuel and other surcharges. As part of the settlement, Thai Airways has admitted to reaching and giving effect to price fixing understandings related to a fuel surcharge, security surcharge and customs fee for the carriage of freight from Indonesia to Australia.
The court ordered Thai Airways to pay A$7.5 million in penalties and a further A$500,000 in costs, bringing the total penalties ordered in the entire proceedings to A$98.5 million. It also issued an injunction restraining the airline from engaging in similar conduct for a period of five years. Injunctions provide an additional deterrent and reassurance that the likelihood of repeat conduct is reduced as reoffending would constitute both a breach of the Act and contempt of court which carries significant penalties.
The ACCC’s trial against Air New Zealand and Garuda Indonesia is continuing in Sydney.
