Australia drags Garuda to court
Ika Krismantari, The Jakarta Post, Jakarta | Wed, 09/02/2009 10:29 PM
The Australian Consumer and Competition Commission (ACCC) has filed a lawsuit against national carrier Garuda Indonesia over allegations that it may have conspired with other airlines to fix air freight cost prices.
The lawsuit comes as part of a fully fledged investigation that started last year with allegations of possible price fixing involving major players in the airline industry.
In a statement released on Wednesday, ACCC accused Garuda of entering arrangements with other international air cargo carriers in Hong Kong and Indonesia between 2001 and 2006 involving price fixing for fuel and security surcharges.
A hearing has been scheduled on the lawsuit against Garuda on Oct. 22 at the Sydney Federal Court, which will make the Indonesian firm the 10th airline to be taken to court by the consumer watchdog.
To date, the court has ordered a total of US$41 million in penalties against offenders.
Garuda spokesperson Pujobroto denied the allegations.He confirmed however that the company did apply a security surcharge for cargo services in Australia, but not with reference to other airlines. Prices were applied on a completely separate basis, he said.
