Aviation

Garuda to pay $19m price-fixing penalty after dropping appeal

The Federal Court has approved a payment plan for Garuda Indonesia to pay a $19 million fine relating to a long-running case against a global price-fixing cartel in the air cargo industry.

The Australian Competition & Consumer Commission (ACCC) launched court action against Garuda and 14 other airlines between 2008 and 2010, alleging cartel conduct between 2002 and 2006 concerning price fixing of surcharges on air cargo services.

Thirteen of the airlines settled with the ACCC, while Air New Zealand and Garuda proceeded to a trial which concluded in May 2013.

In October 2014, the Federal Court initially dismissed the ACCC’s case against Air New Zealand and Garuda. The competition watchdog appealed the decision and the Full Court of the Federal Court upheld the ACCC’s appeal.

Garuda and Air NZ then appealed the decision to the High Court, which unanimously dismissed the appeal. In May 2019, the Federal Court ordered the $19 million penalty against Garuda.

Garuda appealed against the penalty judgment in June 2019, but has now withdrawn its appeal.

Earlier this month, the court ordered, by consent, that Garuda pay the $19 million penalty, and a contribution to the ACCC’s costs, in monthly instalments between December 2021 and December 2026.

ACCC chair Rod Sims said: “The airline industry has suffered significantly because of the pandemic and these orders take account of that.

“What is important is that Garuda has been ordered to pay the full penalty for its role in this serious price-fixing cartel without a further appeal.

“We are pleased this concludes this long-running case against 15 global airlines, including Garuda, Air New Zealand, Qantas, Singapore Airlines and Cathay Pacific, which has resulted in total penalties of $132.5 million being ordered by the court.”

Under the court orders, if Garuda misses a monthly payment, the entire remaining outstanding amount becomes due for payment within 30 working days.

“Businesses of all sizes should note the ACCC’s determination to fight this large international cartel,” Sims said.

“Significant penalties, like the $19 million penalty ordered against Garuda, send a strong warning that anti-competitive conduct has serious consequences.

“We will also continue to closely watch for any signs of anti-competitive conduct in the airline industry specifically following the disruption to travel due to COVID-19, given our monitoring role in the domestic airline industry.”


Featured image source: iStock/bayuharsa


SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Aviation

“My heart palpitated”: Influencer raises $83,000 tip for airport pianist

A kind stranger raised a whopping amount of money for a pianist who spends his days tinkling the ivories and raising spirits at an international airport.

Share

CommentComments

Destinations

Experts warn of yet another Sydney lockdown extension, as Tasmania reopens to Victoria and SA

We’ve coupled the good with the bad in this domestic travel update, but we won’t judge if you only choose to read the positive stuff.

Share

CommentComments

Travel Agents

“The product of travel has lost its value”: AFTA chair pens letter to ScoMo

Tom Wanwaring has his handwriting down pat after penning a letter to the PM. Travel Weekly understands he opted for a felt tip and even sealed it with a custom wax stamp.

Share

CommentComments

Aviation

Qantas to host frequent flyer “point-bidding frenzy” for exclusive experiences

The airline will host a series of auctions so its frequent flyers can use up the points they’ve been hoarding since the start of the pandemic.

Share

CommentComments

Cruise

NCL returns to cruising after 500-day pause

Harry Sommer and Ben Angell have given each other a big virtual high five, after the cruise line commemorated its return to the water by making a little bit of history in the process.

Share

CommentComments

Hotels

Baillie Lodges snaps up luxe Barossa Valley property

The company has expanded its portfolio with the addition of this gem in the middle of South Australia’s wine region. They had us at wine.

Share

CommentComments

Technology

IATA Travel Pass the “green light” to fly internationally with Qantas and Jetstar

After trialling and testing a number of potential solutions, the Qantas Group has revealed what Aussies will need to get outta here and overseas.

Share

CommentComments

Travel Agents

Travel demand “to return with a vengeance”, says Flight Centre’s Aussie boss

Kelly Spencer and her team at Flight Centre all have their catching mitts on in anticipation of an aggressive travel bounce-back.

Share

CommentComments

Cruise

Aurora Expeditions’ partnership with Virtuoso goes global

Aurora Expeditions CEO Monique Ponfoort is doing the happy dance after securing a global deal with the luxe travel network.

Share

CommentComments

Hotels

Marriott appoints four first-time GMs for signature Aussie hotels

It’s all looking very peachy over at Marriott, with the hotel giant’s career development program bearing fruit in the form of four new GMs.

Share

CommentComments

Destinations

Queensland channels Van Morrison in new $2.4m tourism campaign

Does “Van the Man” feature heavily in your Spotify playlists? Well, we guarantee you’ll be bopping along to this new campaign from TEQ.

Share

CommentComments

Technology

New marketplace lets travel agents avoid GDS surcharges (and keep incentives)

This article is all about GDS, the NDC and LCCs. If all of those acronyms have gone right over your head, we suggest skipping to the next story.

Share

CommentComments