Garuda accused of fuel surcharge rort
JAKARTA – Garuda Indonesia and eight other Indonesian airlines have been slapped with fines for being involved in price fixing that caused additional costs to customers of up to US$1.5 billion.
Along with Garuda Indonesia, the Business Competition Supervisory Agency (KPPU) also imposed fines on Sriwijaya Air, Merpati Nusantara Airlines, Mandala Airlines, Travel Express Aviation Service, Lion Mentari Airlines, Wings Abadi Airlines, Metro Batavia and Kartika Airlines.
The agency fined the local airlines 585 billion rupiah ($A69 million) and said the fines and compensation would be paid to the state, which would use the money to improve airport facilities and public services.
A KPPU commissioner said that the nine airlines were involved in a cartel in fixing their fuel surcharges between 2006 and 2009.
In addition to the fines and compensation, the agency also ordered the nine airlines involved in price fixing to terminate their fuel surcharge agreements,
Garuda spokesman Pujobroto said the airline had never been involved in any cartel practices with other airlines in imposing a fuel surcharge on its passengers.
“Moreover, the fuel surcharge is a normal practice in the international airline industry. It is based on fluctuations in oil prices,†he said, adding that the anti-monopoly agency used wrong assumptions because it used incorrect data and facts.
Pujobroto said the airline would appeal.
Ian Jarrett
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