ACCC chairman Rod Sims said this case would send a “strong message” to others.

Gulf carrier, Emirates has been ordered to pay $10 million in penalties for engaging in cartel conduct, including price fixing of fuel and other surcharges.

The decision comes one week ahead of the Australian Competition and Consumer Commission’s (ACCC) main proceedings, which are due to commence against a number of international airlines including Singapore Airlines, Air New Zealand and Cathay Pacific.

Emirates is the tenth airline to settle out of court, bringing total penalties against carriers involved in similar dealings to AU$68 million.

ACCC chairman Rod Sims said this case warranted “the highest penalties” of an investigation and would send a “strong message” that this type of behaviour would not be tolerated. 

“Regardless of size or country of origin – engaging in cartel conduct that harms competition in Australia,” Mr Sims said.  

“Cartel conduct is illegal and often results in increased prices for consumers.”

As part of the settlement, Emirates was ordered to refrain from engaging in similar activities for five years and to pay a further AU$500,000 towards ACCC's legal costs.

This week the Commission also entered legal proceedings withFlight Centre for allegations of price-fixing.

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