Air Carriers And The Trade Practices Act

In recent years, a number of high profile international airfreight carriers have come under increased scrutiny from competition regulators and private litigants, both in Australia and abroad, over allegations that the carriers have conspired to increase prices through the imposition of excessive fuel surcharges. A recent decision by the Federal Court of Australia, in which the respondent airlines were successful in having an applicant's statement of claim struck out, signals that the airlines won't be going down without a fight.

Background

In February last year, a class action, led by Auskay International Manufacturing and Trade Pty Ltd (the applicant), was brought against seven international airlines, Qantas, Lufthansa, Singapore Airlines, Cathay Pacific, Air New Zealand, JAL and British Airways. In Auskay International Manufacturing & Trade Pty Ltd v Qantas Airways Ltd [2008] FCA 1458 (Auskay), the applicant alleged that, in about January 2000, the airlines