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Garuda Charged in Australia with Price-Fixing

Hearings Set for Sydney on October 22, 2009 in Charges Brought by Consumer Watchdog Group.

(9/7/2009) Garuda Indonesia has been charged by the Australian Consumer and Competition Commission (ACCC) for conspiring to fix air cargo prices.

The lawsuit alleges that Garuda and other carriers of colluding to fix fuel and security surcharges in Indonesia and Hong Kong between 2001 and 2006.

Garuda has adamantly denied the price fixing charges, saying that the implementation of surcharges for cargo services in Australia was done without reference to any other carrier.

The first hearing in the lawsuit against Garuda is scheduled to be heard in Sydney Federal Court on October 22, 2009.

The ACCC is an active advocate on behalf of airline customers' rights, with Garuda now the 10th airline brought to court by the watchdog group. Prosecutions of airlines under charges brought by ACCC have resulted in penalties of US$41 million.

Among the airlines brought to court by the ACCC are: Qantas Airways, British Airways, Air France, KLM, Martinair Holland and Cargo Lux. Actions are said to be pending by the ACCC against Singapore Airlines, Cathay Pacific and Emirates.