Air Cargo Class Action

Latest news

On 1 March 2012, the docket Judge made orders setting a timetable for determination of disputes between the Air Cargo class action parties regarding:

a) Compliance by respondents with orders for discovery;
b) Categories of transactional data to be discovered by respondents; and
c) Discovery by applicants.

The next hearing of the matter is listed for 4 May 2012.

The action

Maurice Blackburn is conducting a price fixing class action against seven major international airlines including Qantas, Lufthansa Cargo, Singapore Airlines, Cathay Pacific, Air New Zealand, JAL and British Airways in relation to the provision of international air freight services since 1 January 2000. The class action seeks damages and other relief on behalf of purchasers of air freight services for losses suffered as a result of the alleged cartel conduct by the airlines.

This class action alleges contraventions of the price fixing provisions of the Trade Practices Act 1974 (Cth) and relates to fuel and security surcharges imposed by the airlines on international air freight services.

Regulatory Proceedings and overseas Class Actions

Proceedings by competition regulators including the Australian Competition & Consumer Commission (ACCC) against various airlines and executives in respect of the alleged global air cargo cartel continue to yield significant results.

The total fines by the ACCC to date against airlines for price-fixing of international air freight amount to AU$52m, and are the highest to be ordered in respect of a single ACCC investigation.

A total of 22 airlines and 21 executives have been charged in the US Department of Justice's ongoing investigation into price fixing in the air transportation industry. To date, more than US$1.8 billion in criminal fines have been imposed and six executives have been sentenced to serve prison time.

On 9 November 2010, the European Commission fined 11 air cargo carriers a total of €799,445,000 for operating a worldwide cartel which affected cargo services within the European Economic Area.

Further settlements have been reached in the US air cargo class action, the most significant being the settlements reached with BA, US$89.5M, and Lan Airlines (including LAN Cargo and Aerolinhas Brasileiras SA), US$66M.  Since our last update there were also settlements reached with Malaysia Airlines, South African Airways, Saudi Arabian Airways, Emirates and El Al Israel Airlines.  These settlements relate to purchases of Airfreight Shipping Services to or from the United States made directly from the defendant airlines. Settlements were also reached and approved by courts in the Canadian air cargo class action proceedings.

Click on the additional information item on the left for more detail about the continuing investigations by the ACCC and other competition regulators around the world and other class actions in respect of the alleged air cargo cartel.

Who are the group members in this Maurice Blackburn class action?

Group members are all those persons resident in Australia as at 11 January 2007 who during the period 1 January 2000 to 11 January 2007 paid identified amounts totalling more than twenty thousand Australian dollars (AUD$20,000) for the carriage of goods to or from Australia including in each instance a component by air.

What you can do

If you fit the above description, you may register your interest with us.  We will contact you upon receiving your completed registration of interest form to invite you to retain us as your lawyers with respect to your individual claim.  The registration of your interest with us does not obligate you to pay any legal costs.

Maurice Blackburn is conducting the case on a 'no win no charge' basis with funding from IMF (Australia) Ltd. There is no cost to class action participants unless they successfully recover money.

If you are unsure whether you are a group member in the class action or if you have any questions about the class action, please contact Erdem Ozyurek at Maurice Blackburn on (03) 9605 2892.