MASkargo fined A$6 million for price fixing

Singapore
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An Australian federal court has fined MASkargo, a subsidiary of Malaysia Airlines, A$6 million ($5.97 million) for price fixing.

The fine was imposed after an investigation by the Australian Competition and Consumer Commission (ACCC), says the ACCC.

The carrier admitted to charges that "it reached and gave effect to understandings with other international airlines regarding the level of particular surcharges and fees relating to air freight carriage from Indonesia". These included customs fees as well as fuel and security charges.

"This penalty sees the total penalties ordered against this international cartel increase to a record $58 million. These penalties are the highest generated by a single ACCC investigation," says ACCC chairman Rod Sims.

The court also issued an order restraining the airline from "engaging in similar conduct for a period of five years" and to pay A$500,000 towards ACCC's legal costs.

ACCC will continue proceedings against Singapore Airlines, Cathay Pacific, Emirates, Air New Zealand and Thai Airways. Proceedings against Garuda Indonesia are frozen pending the outcome of an appeal.