Court dismisses air cargo cartel proceedings against Air New Zealand and Garuda Indonesia

31 October 2014

The Federal Court has dismissed proceedings brought by the Australian Competition and Consumer Commission against Air New Zealand Ltd (Air New Zealand) and PT Garuda Indonesia Ltd (Garuda) for alleged price fixing in the air cargo industry.

The proceedings against Air New Zealand and Garuda concerned alleged arrangements or understandings with other international air cargo carriers in the period between 2001 and 2006, to fix fuel, security and insurance surcharges on air cargo services.

Whilst Justice Perram concluded that a number of collusive arrangements were made out, he found that the conduct did not take place in a ‘market in Australia’ as required by the Trade Practices Act 1974 (now the Competition and Consumer Act 2010) at that time.

“This is a long and complex judgment which the ACCC will carefully consider,” ACCC Chairman Rod Sims said.

Release number: 
MR 271/14
Media enquiries: 
Media team - 1300 138 917

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