Air Cargo Class Action
Latest news
The applicants have recently asked the Court for permission to
amend their statement of claim to include more detail about the
price fixing arrangements alleged. That detail is taken from
documents discovered by respondents.
The applicants have also asked the Court to order respondents to
provide more documents and data to assist with preparation of the
case and quantification of loss.
The Court will hear the applications for leave to amend and
further discovery at the end of July 2013.
The action
Maurice Blackburn is conducting a price fixing class action
against major international airlines including Qantas, Lufthansa
Cargo, Singapore Airlines, Cathay Pacific, Air New Zealand 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 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 nearly $100 million, 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.
On 2 August 2012, the US Court approved further settlements
reached in the US air cargo class action. These settlements bring
the total payments so far to US$485 million. 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.
Discontinuance against JAL
On 26 October 2012 the Court approved the proposed
discontinuance against the Eighth Respondent, Japan Airlines
International Co Limited (JAL).
An agreement was reached with JAL to discontinue
the class action in exchange for production of information and data
which the Applicants consider will assist with their case.
This agreement was reached because in 2010 JAL had
become insolvent and underwent corporate reorganization in Japan
and as a consequence the Applicants and group members will be
unable to obtain any order for damages from JAL.
The action continues against the other
Respondents.
ACCC proceedings
The Australian Competition and Consumer Commission
(ACCC) has been conducting proceedings against airlines regarding
the alleged cartel the subject of this proceeding. During
those proceedings, many airlines have reached settlements with the
ACCC, admitting that they engaged in contravening conduct and
agreeing to pay fines. Recent settlements are as follows:
(a) On 11 October 2012 the Court
approved an agreed penalty of AU$10 million against Emirates;
(b) In-principle settlements have been reached with
Cathay Pacific (on 29 October 2012); Thai Airways (6 November 2012)
and Singapore Airlines Cargo (8 November 2012). Hearings on
penalties will occur on 6 and 13 December 2012.
The trial of the ACCC proceedings against airlines
that had not at that point settled commenced on 6 November 2012 in
the Federal Court of Australia.
In-principle settlement agreements were announced
with Thai Airways on day one and Singapore Cargo Airlines on day
three of the trial, which continues against Garuda Indonesia and
Air New Zealand.
Other recent developments in class action
At a directions hearing on 26 October 2012 the
Court made orders in relation to:
(c) Discovery by the Second Respondent Lufthansa
Cargo AG of material it gave the ACCC in seeking or obtaining
leniency pursuant to the ACCC's leniency policy;
(d) Production of all information-gathering notices
served on the Respondents by the ACCC relating to possible
contraventions of the Trade Practices Act 1974 (Cth) arising from
fuel surcharges, security surcharges or general freight rates;
and
(e) Compliance with various discovery orders made
previously.