Press Releases and Announcements - 10 November 2010
Airlines should move swiftly to settle Australian price fixing class action
Court action to secure compensation for Australian victims of
the air cargo price fixing cartel should move ahead more
quickly following the European Commission's decision overnight to
fine 11 airlines $A1.1billion.
Class action law firm Maurice Blackburn which is representing
businesses affected by the global price-fixing collusion welcomed
the EC decision as further confirmation that airlines have acted
illegally in their activities to fix the global price
for various surcharges associated with international
freight.
"The airlines have been trying to deny that there is a case to
answer in this country," said Brooke Dellavedova, principal at
Maurice Blackburn.
"Given Australia's geographic isolation and our reliance on
international air freight there is no doubt that Australian
businesses were affected by global price fixing."
Since the firm launched these proceedings almost four years ago
almost 300 companies have signed up to the class action.
"We are alleging that between December 1999 and February 2006
some airlines colluded on some surcharges.
"This European Commission decision, coupled with the recent
decision by the Full Court of the Federal Court puts us in a
stronger position to get a fair outcome for our clients who have
suffered considerable loss at the hands of Qantas and other members
of the price fixing cartel," said Ms Dellavedova.
Businesses affected can still join the class action. Any
business which spent more than $20,000 on international freight
between December 1999 and February 2006 is eligible.
Legal background
In December 2009 the Federal Court struck out the pleading in
the Air Cargo matter, finding that it failed to properly allege
certain important facts. Auskay, the applicant in the case appealed
that decision to a Full Court of the Federal Court.
On 12 August 2010 the Full Court agreed that the necessary facts
were sufficiently set out and the case can now more forward.
The next major step will be to obtain defences from the
airlines.
The matter returns to the Federal Court in Melbourne on 22
November for a directions hearing.
Further background
http://www.mauriceblackburnnsw.com.au/areas-of-practice/class-actions/current-class-actions/air-cargo-class-action.aspx