02 September 2009

Garuda denies price fixing allegations

CANBERRA ââ¬' Garuda Indonesia has denied allegations by Australiaââ¬â¢s consumer watchdog, the ACCC, that it has been involved in a price fixing scam.

The Australian Consumer and Competition Commission has launched legal action against Garuda Indonesia over claims it colluded with rivals to fix air freight costs.

A Garuda Indonesia spokesperson said Garuda would defend the claims made by the ACCC on the following grounds:

1. Garuda Indonesia has never imposed a fuel surcharge on cargo shipped from Australia and indeed has never charged shippers in Australia any form of fuel surcharge.

2. According to the ACCCââ¬â¢s media statement, the case relates to alleged events in Indonesia and Hong Kong, not Australia.

3. As such, it is difficult to see how these events could have affected the supply of services by Garuda Indonesia in Australia where there was no fuel surcharge.

4. Garuda Indonesia did impose a security surcharge on cargo carried from Australia, but did so without reference to any other airline and on an entirely different basis from most, if not all, other airlines.ââ¬~

The ACCC proceedings launched in the Federal Court yesterday makes Garuda the 10th airline be taken to court by Australia's consumer watchdog.

The ACCC alleges that Garuda was one of several airlines which entered into agreements to fix the price of a fuel and security surcharge from 2001 to 2006.

To date, six airlines, including Qantas, have been ordered to pay $41 million in penalties over similar claims, while proceedings against Singapore Airlines, Cathay Pacific and Emirates are still before the court.

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• One country's Cullusion is anothers NOP
  
  

  It would appear from the article the paragraph: "According to the ACCC's media statement, the case relates to alleged events in Indonesia and Hong Kong, not Australia." indicates that Australia is seeking to apply its law to other jurisdictions in much the same way the U.S.A. does. VietNam has held government sponsored meetings of various travel sectors, including representatives from international companies, where various market sectors and types were divided up and assigned to various industry groups so marketing could be co-ordinated. This included pricing discounts. The meetings were openly reported in the daily press. The intent was not to deprive customers in any way, rather to ensure trade participants got their share of the business. If one government does business this way, openly, can another government make accusations of collusion?

  By J Hewson, Thursday, September 3, 2009