Garuda ordered to pay millions for price fixing
Australia’s federal court has ordered PT Garuda Indonesia (Garuda) to pay penalties of AUD 19 million (USD 13 million) for colluding on fees and surcharges for air freight services.
The penalties follow the court action launched by the Australian competition and consumer commission (ACCC) against a global air cargo cartel, which has so far resulted in penalties of USD 91 million against fourteen airlines, including Air New Zealand, Qantas, Singapore Airlines and Cathay Pacific.
The Court found that between 2003 and 2006, Garuda made and gave effect to agreements that fixed the price of security and fuel surcharges, as well as a customs fee from Indonesia. It was ordered to pay USD 10.3 million. A further USD 2.7 million was ordered for the imposition and level of insurance and fuel surcharges from Hong Kong. (ah)