Thai Airways International Fined 7.5 Million Australian Dollar For Trade Violation

[webfact]

AVIATION

THAI fined A$7.5 mn for trade violation

The Nation

BANGKOK: -- Thai Airways International has paid the 7.5 million Australian dollar penalty to the Australian government, for breaching the Trade Practices Act 1974.

In a statement to the Stock Exchange of Thailand, the airline said that it already used reserve to pay for the 7.5 million pecuniary penalty as well as the legal proceeding cost of 500,000 Australian dollars, as ordered by the Federal Court in Sydney.

The Australian Competition and Consumer Commission (ACCC) launched the investigation on October 28, 2009. It subsequently filed the lawsuit for violating the law.

As part of the settlement, Thai Airways admitted to engaging in price-fixing for a fuel surcharge, security surcharge and customs fee for the carriage of freight from Indonesia to Australia.

The court’s decision comes a week after the Federal Court hit Singapore Airlines Cargo and Cathay Pacific Airways with $23 million in penalties for similar conduct.

Thai Airways became the 13th international airline to admit to engaging in cartel conduct.ACCC chairman Rod Sims said the $98.5 million in penalties already ordered by the court was the biggest arising from a single ACCC investigation.

The ACCC’s trial against Air New Zealand and Garuda Indonesia continues before Justice Perram in the Federal Court in Sydney.

-- The Nation 2012-12-17

[supaprik]

wonderful.....now Thai Air have an excuse to up prices and serve meals in plastic boxes, get rid of our wine glases and lovely cerated edged cutlery up the front of the plane as well!!! bugger!

[psmiller]

Do you think Thai will be serving Australian wine in Business class?

[UbonOz]

There's next year's profit down the pan.

[enrico2]

wonderful.....now Thai Air have an excuse to up prices and serve meals in plastic boxes, get rid of our wine glases and lovely cerated edged cutlery up the front of the plane as well!!! bugger!

WOW, you are a bit ahead of facts, arent' you?

[Bluespunk]

There's next year's profit down the pan.

Profits? What profits?

[ChrisY1]

A Thai company involved in price collusion???? Cannot be!!

[WilliaminBKK]

Rather than turn this into a TG bash fest.

TG is one of 13 carriers so far to have engaged in this cargo practice and there is more to come, I commend OZ for being so diligent protecting consumers & cargo forwarders. When the UK/US/CA/EU start to take the same action & dig deep into this fuel surcharge money grab lots of carriers are going to be in hot water not only cargo but passengers. (Keep your tickets copy's for all air travel )

As for the offence, let's turn back the clocks. Every bean counter from every airline globally was learning about the "new fuel surcharge" revenue stream $20 $50 $100 $200 $300 - let's test the market and see what sticks. The news makes it sound like they sat around a table and fixed prices rates when in fact they simply were following one another, fares and rates are filed so it is fairly simple to copy each other.

I'm sure the bean counters involved are not having a good day, however the 7.5 million is only a drop in the bucket.

[dksharron]

Who will go to jail?

[Nisa]

Rather than turn this into a TG bash fest.

TG is one of 13 carriers so far to have engaged in this cargo practice and there is more to come, I commend OZ for being so diligent protecting consumers & cargo forwarders. When the UK/US/CA/EU start to take the same action & dig deep into this fuel surcharge money grab lots of carriers are going to be in hot water not only cargo but passengers. (Keep your tickets copy's for all air travel )

As for the offence, let's turn back the clocks. Every bean counter from every airline globally was learning about the "new fuel surcharge" revenue stream $20 $50 $100 $200 $300 - let's test the market and see what sticks. The news makes it sound like they sat around a table and fixed prices rates when in fact they simply were following one another, fares and rates are filed so it is fairly simple to copy each other.

I'm sure the bean counters involved are not having a good day, however the 7.5 million is only a drop in the bucket.

Apparently some of the other airlines accused or who have admitted their guilt in this (http://en.wikipedia.org/wiki/Price_fixing_cases#Airlines) which so far has resulted in 100-Million in fines ... Qantas, British Airways, Singapore Airlines ($23-million fine) Air France, KLM, Martinair Holland, Cargolux, Cathay Pacific ($23-million fine), Emirates ($10.3-million fine), PT Garuda Indonesia, Korean Air, Malaysian Airline ($6-million fine) , Japan Airlines, Air New Zealand

[WilliaminBKK]

Rather than turn this into a TG bash fest.

TG is one of 13 carriers so far to have engaged in this cargo practice and there is more to come, I commend OZ for being so diligent protecting consumers & cargo forwarders. When the UK/US/CA/EU start to take the same action & dig deep into this fuel surcharge money grab lots of carriers are going to be in hot water not only cargo but passengers. (Keep your tickets copy's for all air travel )

As for the offence, let's turn back the clocks. Every bean counter from every airline globally was learning about the "new fuel surcharge" revenue stream $20 $50 $100 $200 $300 - let's test the market and see what sticks. The news makes it sound like they sat around a table and fixed prices rates when in fact they simply were following one another, fares and rates are filed so it is fairly simple to copy each other.

I'm sure the bean counters involved are not having a good day, however the 7.5 million is only a drop in the bucket.

Apparently some of the other airlines accused or who have admitted their guilt in this (http://en.wikipedia...._cases#Airlines) which so far has resulted in 100-Million in fines ... Qantas, British Airways, Singapore Airlines ($23-million fine) Air France, KLM, Martinair Holland, Cargolux, Cathay Pacific ($23-million fine), Emirates ($10.3-million fine), PT Garuda Indonesia, Korean Air, Malaysian Airline ($6-million fine) , Japan Airlines, Air New Zealand

Those who admitted their guilt decided to pull the band aid off quickly-good for them. There are many more who are still trying to sort the mess out as their local anti-trust rules would then apply if found guilty abroad.

[nokbird]

THAI is o used to being unaccountable. Opps.

Don't you hate those countries that don't sell their justice system to blatant corruption

Just had a look at the THAI site, BKK - SYD- BKK 78,000B Nuff said,

Tell em Ya Kidding

Edited December 17, 2012 by nokbird

[metisdead]

Off topic posts and replies have been removed.

[Nisa]

There's next year's profit down the pan.

Profits? What profits?

They announced a few days ago they expect a $23 Million profit this year (not great considering they initially hoped for near 200 Mill profit) and have to believe this is also after the fine since they likely would have known about it and the story indicates they already paid it. Up until the last few years they actually had a great run of things recording 40 years of straight profits. Edited December 17, 2012 by Nisa

[dcsw53]

Thai Airways became the 13th international airline to admit to engaging in cartel conduct.

What is a cartel ?

Those nice oil producing countries who fix the international selling price of the thing that keeps these greedy airlines flying, would never get invloved in that sort of activity ?

I feel sorry for Thai Airways, even with this they only managed to make USD 10m after tax. They should put a levy on people coming from OPEC countries, they can afford it.

[skorchio]

Rather than turn this into a TG bash fest.

TG is one of 13 carriers so far to have engaged in this cargo practice and there is more to come, I commend OZ for being so diligent protecting consumers & cargo forwarders. When the UK/US/CA/EU start to take the same action & dig deep into this fuel surcharge money grab lots of carriers are going to be in hot water not only cargo but passengers. (Keep your tickets copy's for all air travel )

As for the offence, let's turn back the clocks. Every bean counter from every airline globally was learning about the "new fuel surcharge" revenue stream $20 $50 $100 $200 $300 - let's test the market and see what sticks. The news makes it sound like they sat around a table and fixed prices rates when in fact they simply were following one another, fares and rates are filed so it is fairly simple to copy each other.

I'm sure the bean counters involved are not having a good day, however the 7.5 million is only a drop in the bucket.

Exactly. The usual merry-go-round claptrap from those who generally don't have enough to do in a day ... 'typical Thai business practices...what profits....that'll teach them .....' when the article clearly states 12 other carriers (including everyone's darling airline SQ) have already been charged and a further few 'flag' carriers are in the dock.

This is how large companies do business in the international arena. To take the stance that only Thai Airways would stoop so low is both naive and ignorant.

[Keesters]

paid the 7.5 million Australian dollar penalty to the Australian government

So the Australian government, on behalf of the Australian people, has the money, but did they suffer any losses though the airlines wrongdoing?

[borabora1]

Do you think Thai will be serving Australian wine in Business class?

Maybe yes...

After all, they've go the lowest fine compared to their competitors.