Australian federal court throws out SIA's application to
thwart price-fixing probe
http://www.lloydslistdcn.com.au/archive/2009/october/06/federal-court-rejects-singapore-airlines-plea
Lloyd's List DCN, 6 Oct 2009
Federal court rejects Singapore Airlines
claim
A submission by Singapore
Airlines challenging the validity of compulsory investigation
notices issued by Australia's competition regulator has been thrown
out by a full hearing of the Federal Court of
Australia.
Under the Trade Practices Act of 2007 and 2008, airlines must
submit documents requested by the Australian Competition and
Consumer Commission (ACCC) for its investigation into alleged
international air cargo cartel activity.
Singapore Airlines challenged the notices by questioning whether
routes between points outside Australia could be regarded as a
market within Australia, ACCC said.
In response, the Full Federal Court said "prices fixed for legs of
a journey which take place wholly outside Australia may ultimately
affect competition in a market in Australia".
Singapore Airlines and
other international air cargo carriers allegedly made fuel and
security surcharge price fixing arrangements between 2001 and
2005.
To date, international carriers have been issued with penalties
totalling $41m by the Federal Court in relation to the air cargo
cartel.
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