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Travel Weekly > News > Cathay, Singapore fined $23m in cartel action
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Cathay, Singapore fined $23m in cartel action

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Published on: 7th December 2012 at 10:07 AM
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Cathay Pacific and Singapore Airlines have become the latest airlines to be fined for their part in a cargo and fuel surcharge cartel. The settlement saw Cathay forced to stump up $11.25 million with Singapore paying $11.95m.

They are the 11th and 12th airlines to settle.

The action was bought by the Australian Competition and Consumer Commission (ACCC).

Both airlines admitted attempting to fix prices in the early 2000s with Cathay accused of urging Qantas to raise its freight prices by 25% to bring it in line with its own rates.

Had the collusion been successful, it would have increased the price on a full Qantas freighter by more than $80,000 per week, the ACCC said.

"The sheer scale of these penalties will act as a strong deterrent to any business considering engaging in cartel conduct, regardless of country or origin," ACCC chairman Rod Sims said. "The ACCC is fiercely committed to stopping cartel conduct, which is illegal, harms competition and often increases prices for consumers."

 

 

 

 

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