Australia brings MAS to court for alleged cargo price-fixing

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The Australian Competition and Consumer Commission (ACCC) has begun proceedings in the country's federal court against Malaysian Airlines and its subsidiary MASkargo for alleged price-fixing.

MAS is the 13th airline to be the subject of ACCC proceedings, says the commission.

"The ACCC alleges that between 2001 and 2006, MAS and MASkargo entered into arrangements or understandings with other international air cargo carriers that had the purpose or effect of fixing the price of a fuel surcharge and a security surcharge that were applied to air cargo carried by them and other airlines," it adds.

These arrangements were reached in Indonesia and Hong Kong for fuel surcharges applied to cargo originating in those countries, and in Indonesia, Hong Kong and Singapore for a security surcharge applied to cargo originating in those countries, it says.

Proceedings have also begun against Singapore Airlines Cargo, Cathay Pacific Airways, Emirates, Garuda Indonesia, Thai Airways International and Korean Air. Proceedings against other airlines that have been concluded, resulted in penalties totalling A$41 million ($38 million), says the ACCC. It adds that it continue to investigate other airlines.