Report: Singapore Airlines to deny freight price fixing charge

Dec 22, 2008, 8:12 GMT

   Sydney - Singapore Airlines says it will defend allegations by the watchdog Australian Competition and Consumer Commission (ACCC) that its cargo subsidiary was involved in an illegal international price-fixing freight cartel, ABC radio reported on Monday.

   The ACCC claims a number of airlines fixed the price of a fuel surcharge on freight rates between 2001 and 2005.

   It is the third airline to be prosecuted by Australia's competition regulator over the alleged cartel with Qantas and British Airways already ordered to pay a total 25 million Australian dollars (17.1 million US dollars) in fines.

   A Singapore Airlines spokesman said the company was committed to competing fairly within the requirements of Australian law, ABC reported.

   New Zealand's competition watchdog, the Commerce Commission, launched legal action a week ago against 13 international airlines, including Singapore Airlines, and seven executives, accusing them of operating an illegal air freight cartel.

   The commission filed papers in the Auckland High Court alleging that airlines throughout the world colluded to raise the price of freighting cargo by imposing surcharges for fuel and added security measures for more than nine years.

   Commission chairwoman Paula Rebstock said 60 airlines had made an illegal global agreement in 1999-2000 and were subject to similar legal action by other competition authorities, including the US Department of Justice, the ACCC and the European Commission.