Australia Sues Emirates for Price Fixing

Australian competition regulators filed a suit in the country’s federal court against Emirates, alleging price fixing in an arrangement with other air cargo carriers.

The Australian Competition and Consumer Commission claimed between 2002 and 2006 Emirates and other international carriers agreed to fix the price of certain fuel and security surcharges and freight rates in Singapore, Indonesia, Hong Kong, United Arab Emirates and India.

Emirates, the largest air cargo carrier in the Middle East, denied the charges and said it would defend itself in a court hearing on Sept. 11 in Sydney, Australia.

In a lengthy worldwide air cargo price fixing investigation that has spread throughout Asia, Europe and the United States, the ACCC has brought suit against eight other airlines. The federal court has assessed penalties on six of them. Australia-based Qantas was ordered to pay $16.6 million. The court ordered British Airways to pay $4.1 million, Air France to pay $2.5 million, KLM to pay $2.5 million, Martinair to pay $4.1 million and Cargolux to pay $4.1 million.

Contact Thomas L. Gallagher at tgallagher@joc.com.