Australia fines JAL for price fixing

AUSTRALIA’S Federal Court has issued a A$5.5 million (US$5.7 million) fine against Japan Airlines International (JAL) for cargo price fixing.

JAL was found guilty of agreeing fuel surcharges with other international airlines between December 2003 and October 2005 and insurance and security surcharges between January 2003 and October 2006 from Singapore to destinations throughout the world, including Australia.

This is the seventh international airline that the Australian Competition and Consumer Commission (ACCC) successfully fined. The ACCC’s chairman, Graeme Samuel, said: “This outcome continues to send a clear message to those involved in cartel behaviour. The ACCC will not stop its endeavours to identify and bring to an end illegal price fixing conduct.”

This fine brings the total that Australia has issued against the cargo cartel to A$46.5 million ($48.7 million).

“The company has agreed…to provide access to additional documents for use against other respondents,” Samuel added.

“This cooperation has earned it a significant discount on the penalty that otherwise would have been sought.”