The Air Cargo Class Action
The action
Maurice Blackburn is conducting a price fixing class
action in the Federal Court of Australia against seven major
international airlines including Qantas, Lufthansa, 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. It is claimed that
the surcharges were used by the airlines to increase prices and did
not reflect the external costs for providing
international air freight services.
Investigations by the ACCC and competition regulators
around the world are continuing. The total criminal fines imposed
by the United States Department of Justice as a result of its
investigation into the air cargo
cartel to date are more than US$1.27 billion.
On 8 May 2008, US-based Qantas executive
Bruce McCaffrey was sentenced to
six months jail and a
fine of US$20,000 for his involvement in this cartel.
On 28 July 2008, Timothy Pfeil, the former
highest-ranking cargo executive in the United States for SAS Cargo
Group, a Scandinavian-based airline, agreed to plead guilty and
serve six months in jail for participating in the conspiracy
to fix prices of air cargo.
In early 2006, class actions were commenced in the US and
Canada alleging cartel arrangements involving international air
freight services against various airlines. In September 2006,
Lufthansa agreed with representatives of the
plaintiffs to pay US$85m in settlement of the class actions in the
US, and US$5.3m in settlement of the class actions in
Canada. Australian residents that paid
for freight within, to or from the US or Canada
during the relevant period are likely to be entitled to participate
in these settlements.
The Australian class action was issued on 11
January 2007.
Who are the group members in this Maurice Blackburn class
action?
Group members are all those persons currently
resident in Australia who, during the period 1 January 2000 to 11
January 2007, paid more than AUD$20,000 for the
carriage of goods to or from Australia by air. It does not matter
from which airline or freight forwarder you purchased the air cargo
services.
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.
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 Simon Weeks or Erdem
Ozyurek at Maurice Blackburn on (03) 9605
2840.