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Travel Weekly > News > Thai next to pay in cartel case
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Thai next to pay in cartel case

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Published on: 17th December 2012 at 1:23 PM
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Thai Airways has become the latest airline to be fined for engaging in cartel conduct, with Sydney's Federal Court ruling it must pay $7.5 million.

It is the thirteenth carrier to accept responsibility in the Australian Competition and Consumer Commission's case, which alleges that a number of international airlines engaged in cartel conduct related to fuel and other surcharges.

ACCC chairman Rod Sims said the latest fine took total penalties ordered by the court in Australia to almost $100 million.

"The $7.5 million penalties ordered against Thai Airways have contributed to the highest total penalties resulting from a single ACCC investigation," Sims said.

Under the settlement, Thai has admitted to price fixing regarding fuel surcharge, security surcharge and customs fee for the carriage of freight from Indonesia to Australia. The competition watchdog started proceedings against Thai in 2009.

The order comes a week after the court ordered Singapore Airlines and Cathay Pacific to pay $23 million in penalties in the same proceedings.

Meanwhile, the ACCC's case against Air New Zealand and Garuda Indonesia continues.

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