Australia Alleges Korean Air Fixed Cargo Prices

Australian regulators are launching an investigation of Korean Air over allegations that the world’s largest international freight airline engaged in price fixing for air cargo services.

The Australian Competition and Consumer Commission announced the investigation this week, saying it had referred the antitrust allegations to federal court for potential damages and penalties.

The charges make Korean Air the 12th airline charged in Australia with violating antitrust laws. The country’s investigation is part of a broader probe around the world that has led to hundreds of millions of dollars in criminal penalties against major airlines and jail time in the United States for a handful of former carrier executives.

Australian courts so far have imposed about $37.5 million in penalties against 11 airlines.

The country’s competition regulators charge that Korean illegally worked with other cargo carriers between 2001 and 2006 to fix the levels of fuel and security charges and customs fees.

“The ACCC alleges that the arrangements or understandings were reached in Korea, Indonesia and Hong Kong for surcharges applied to cargo originating in those countries and in Indonesia for a customs fee applied to cargo originating in that country,” the agency said.