Garuda Indonesia drops Australia court appeal in price-fixing case, told to pay $15 million fine

21-Apr-2021 Intellasia | Reuters | 5:02 AM Print This Post

An Australian court ordered Garuda Indonesia (GIAA.JK) to pay a fine of A$19 million ($15 million) in relation to a price-fixing case after Indonesia’s flag carrier dropped an appeal against the penalty levied two years ago, a regulator said on Tuesday.

The Federal Court asked Garuda to pay the sum after the airline withdrew its appeal against the May 2019 judgement which found it had fixed fees and surcharges for air freight services between 2003 and 2006, the Australian Competition & Consumer Commission (ACCC) said. (https://bit.ly/3tz8qB6)

“We will also continue to closely watch for any signs of anti-competitive conduct in the airline industry specifically following the disruption to travel due to COVID-19,” the ACCC said in a statement.

The Federal Court ordered Garuda to pay the penalty in monthly installments between December 2021 and December 2026, it said.

Garuda did not immediately respond to an emailed request for comment.

The airline industry has been crippled due to the collapse of air travel amid the coronavirus pandemic, hurting its bottomline and net cashflow.

($1 = 1.2875 Australian dollars)

https://www.reuters.com/world/asia-pacific/garuda-indonesia-drops-australia-court-appeal-price-fixing-case-told-pay-15 million-2021-04-20/

 

Category: Indonesia

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