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Class Action Against Lion Air Under Threat

Anti-Monopoly Body Accuses Airlines Suit Against Lion Air as Illegal.

(8/18/2003) A class action suit by five national airlines against Lion Air may be abandoned in the face of counter-charges by the Competitive Practice Commission (KPPU) that such a suit violates national laws against cartels and monopolies.

The original charges brought by five airlines and led by Garuda Indonesia claimed that Lion Air was selling tickets below price levels set the department of air communication on their Batam-Jakarta routes. Lion Air strongly refuted the charges, claiming their greater efficiency allowed them to offer better prices to the general public and that this fact was on file with the Government.

Meanwhile the KPPU has taken the view that the class action suit by five airlines against Lion Air is tantamount to the actions of a cartel trying to fix the market price for air tickets. Such action is expressly prohibited by Indonesia's anti-monopoly law of 1999.

 

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