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

bandung, indonesia-june 16, 2014: Garuda Indonesia airline taking manoeuvre on husein sastranegara airport bandung.

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Garuda appealed against the penalty judgment in June 2019, but has now withdrawn its appeal.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

Latest News

  • Cruise

Cruise Traveller’s new Scottish Highlands cruise tour package

Australian small ship cruising specialist, Cruise Traveller, offers a 20-night land and sea holiday in the UK aboard the Lord of the Glens. The tiny cruise line’s 52-guest boutique vessel, Lord of the Glens, is purpose-built to explore the intricate waterways and lochs of the Scottish Highlands. It boasts a rich, traditional ambience with polished […]

  • Cruise

Celebrity Xcel’s keel-laying ceremony in France, with 2025 inaugural sail planned

Construction has commenced on Celebrity Cruises’ next ship, Celebrity Xcel, with a keel-laying ceremony at the Chantiers de l’Atlantique shipyard in Saint-Nazaire, France. An Edge Series ship, Celebrity Xcel will set sail in autumn 2025, with several new yet-to-be-revealed offerings. At the ceremony, Jason Liberty, president and CEO of Royal Caribbean Group (RCG), the parent […]

  • Destinations
  • Tour Operators

Globus unveils nine new independent tours for 2025

Coach touring brand Globus has unveiled nine new independent tours for 2025, from Bangkok to Bali and Abu Dhabi to Nepal. “With Globus Independent tours, our guests are free to enjoy the many benefits of touring, untethered and unscheduled,” APAC head of marketing, Globus family of brands (GFOB), Chris Fundell said. “Providing hand-picked hotel accommodations, […]

  • Hotels

Mandarin Oriental Hotel Group opens Mandarin Oriental Mayfair

The Mandarin Oriental has opened a second property in London, the Mandarin Oriental Mayfair, in the heart of historic Hanover Square. Designed by internationally renowned Rogers Stirk Harbour and Partners, the hotel is the first new build in Mayfair in over a decade. Bringing a modern architectural approach to one of London’s most storied squares, […]

  • Hotels

Outrigger Reef Waikiki Beach Resort unveils Coral Kids Club

On top of its US$85 million (AU$150m) transformation, Outrigger Reef Waikiki Beach Resort’s new Coral Kids Club provides an engaging activity centre for kids. Designed for keiki (children), ages 5-12, the activity centre offers daily cultural workshops with hands-on activities rooted around the Āina Guardian workbook. It was developed by Candes Gentry, co-author of Eat […]

  • Hotels

Minor Hotels announces fourth franchised hotel

Minor Hotels has added to its portfolio of more than 500 hotels in operation after signing Oaks Melbourne on William Suites as its fourth franchised hotel. The 220-room apartment hotel is the third Oaks property signed under a franchise model after the Oaks Toowoomba and Oaks Townsville Metropole. The proven success of these properties highlights […]

  • Destinations

Phuket unveils cutting-edge medical facility

Minor Hotels has announced Layan Life by Anantara, a world-class medical wellness facility that is set to elevate Phuket’s reputation as an international medical wellness destination. The new facility is set across 1,767sqm within the grounds of Anantara Layan Phuket Resort and is set to open in Q3 of this year. It offers a blend […]

  • Events

Out West Piano Fest comes alive in Bathurst

The three-day symphony of the senses comes back to Bathurst, at picturesque Blackdown Farm, as Out West Piano Fest returns 25-27 October. Located just five minutes away from Bathurst NSW is a pastoral heritage, art, and culture. It was also once home to Australian artist, Tim Storrier. The extensive gardens in full spring bloom offer […]

  • Attractions
  • Cruise

Japan in Bloom with Cruise Express

Send clients out to experience the best of the Land of the Rising Sun with Cruise Express and their Japan in Bloom expedition, a 21-night adventure. As interest in Japan hits an all-time high, Cruise Express is pleased to announce its ultimate Japanese bucket list trip. This adventure is geared for Australians wanting to tick […]

  • Road & Rail

Explore Uzbekistan with Golden Eagle Luxury Trains

Golden Eagle Luxury Trains presents an exclusive itinerary to Uzbekistan with ensuite cabins, a personal cabin attendant, and off-train excursions. Travelling aboard the opulent Golden Eagle train, with ensuite cabins, guests will dive deep into Uzbekistan’s spectacularly global cultural identity. A personal cabin attendant, all porterage and gratuities and all off train excursions are included […]

  • Destinations
  • Partner Content

Year-round beauty awaits you in the Emerald Ilse

Feel like you've been hard on luck lately? Perhaps a trip to the Emerald Isle could help you steal some off the Irish.

Partner Content

by Travel Weekly

Travel Weekly