Thai Airways Fined $7.5M

Thai Airways has just been fined by a whopping $7.5 million for its involvement in an air-freight cartel. The airline follows the fate of others like Cathay Pacific and Singapore Airlines for illegal activities.

Thai Airways is also the 13th airline to be fined after it admitted that it participated in a global cartel of fixing freight rates on international routes.

The airline admitted that it fixed fuel prices, security surcharges, and customs fee for freights that were flown between Australia and Indonesia.

A judge from a Federal Court said the involvement of Thai Airways was “deliberate and systematic” and included senior staff in its Indonesia operations.

Aside from the file, the federal court also ordered Thai Airways to pay some $500,000 in court costs.

The penalty imposed on all airlines involved in the global air-freight cartel totaled to some $98.5 million. The investigation was spearheaded by the Australian Competition and Consumer Commission (ACCC).

Rods Sims, the ACCC chairman, said the federal court decision sent a strong and clear signal to the airline industry that cartel activities would not be tolerated. The investigation lasted four years.

ACCC is still pursuing legal action against Garuda Indonesia and Air New Zealand.

Earlier, Cathay Pacific and Singapore Airlines were fined some $11 million each for their involvement in the cartel.

Qantas was also slapped with a $20 million fine in 2008. In total, the airline was ordered to pay more than $105 million.