$5.5 million price-fixing penalty for Korean Air

Australia\'s Federal Court Monday hit Korean Air with a Aus$5.5 million (US$5.5 million) penalty for price fixing, after the carrier admitted it agreed with other airlines on some cargo charges. Australia\'s Competition and Consumer Commission (ACCC) has pursued a number of international airlines for cartel conduct related to air freight, and the penalty brings to Aus$52 million fines issued against the airlines involved. \"These proceedings demonstrate the ACCC\'s determination to pursue sanctions for cartel conduct,\" ACCC chairman Rod Sims said. The Australian competition watchdog brought proceedings against Korean Air in March 2010, alleging it had reached understandings with other international airlines on cargo carriage. Korean Air has admitted it did so in relation to fuel and security surcharges from May 2003 until February 2006 on freight out of Indonesia, including to Australia, as well as customs fees on cargo from Australia to Indonesia from May 2004 to October 2005, the ACCC said. Korean Air, which cooperated with the investigation, is the eighth international carrier to have settled its case in the long-running investigation. Settlements have also been reached with Japan Airlines, Qantas, British Airways, Cargolux, Martinair, and the now-merged Air France and KLM. Proceedings against Singapore Airlines, Cathay Pacific, Emirates, Air New Zealand, Malaysian Airlines and Thai Airways International continue, with a freeze on proceedings against Garuda pending an appeal to the High Court.