Emirates fined A$10.5 million for cartel involvement

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The Federal Court in Sydney has ordered UAE based Emirates to pay a total of A$10 million in penalties for taking part in cartel conduct.

The Dubai airline has agreed to pay the fine to settle a case brought by Australian regulators who accused a number of airlines of fixing surcharges for fuel and other prices.

The Australian Competition and Consumer Commission (ACCC) began proceedings in 2009, accusing multiple airlines of operating in a cartel. Emirates is the 10th airline to settle, bringing the total penalties against international airlines involved in the cartel to A$68 million.

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Emirates, which is the tenth airline to settle in these proceedings, has agreed to pay A$7 million for reaching illegal understandings with other airlines relating to surcharges and a customs fee from Indonesia to Australia and elsewhere between October 2001 and May 2006.

The airline was fined an additional A$3 million for attempting to fix rates with DAS Air Cargo for the supply of air freight from Australia. The Federal Court in Sydney ordered the carrier to pay A$ 500,000 towards the ACCC’s costs.

Singapore Airlines, Cathay Pacific, Air New Zealand and Thai Airways are due to have their cases heard later this month. The ACCC is also opening proceedings against Garuda Indonesia following a High Court decision last month declaring that the airline was not eligible for foreign state immunity.