EC drops price-fixing charges
Credit: Bangkok Post (http://www.bangkokpost.com)
The European Commission's decision to drop charges against Thai Airways International (THAI) in a global cargo price-fixing case bodes well for its fight to have lawsuits of a similar nature elsewhere dismissed.
The EC's ruling on Tuesday not to press charges against THAI for allegedly conspiring with other major world carriers to drive up cargo freight rates has saved the flag carrier at least 500 million baht in possible fines.
Winning the case in the EU is only the beginning, as THAI still faces similar allegations in the US, Australia, New Zealand and South Korea.
"But the EC's ruling bodes well for our efforts to convince others that THAI is not engaged in wrongdoing," said Niruj Maneepun, vice-president for legal affairs and compliance.
The EC's decision shows the allegations were groundless and strengthens our efforts to show we abide by the rules of good corporate governance, he said.
THAI would use the favourable ruling in its other court fights, said Mr Niruj, adding the airline's legal advisers in the relevant countries have been co-ordinating a common approach.
The EC's decision not to charge THAI was the culmination of a four-year battle.
THAI is one of 11 airlines that escaped the EC charges. Eleven others including Singapore Airlines and Cathay Pacific were fined 8-200 million euros (326 million to 8.14 billion baht) apiece, said the THAI executive.
The eleven airlines were found guilty of forming a global cartel to fix air-freight tariffs, mainly fuel surcharges.
The EC said the airlines colluded on some surcharges between December 1999 and February 2006, when the investigation, which initially targeted more than 20 companies, started with unannounced raids at airline offices.
In 2006, THAI's Zurich and Frankfurt offices were raided by EC investigators who found documents and e-mails that suggested collusion.
The news lifted THAI's share price yesterday to a four-year high, closing at 47 baht, up two baht, in heavy trade worth 1.06 billion baht.
Credit: Bangkok Post (http://www.bangkokpost.com)
Credit: Bangkok Post (http://www.bangkokpost.com)
The European Commission's decision to drop charges against Thai Airways International (THAI) in a global cargo price-fixing case bodes well for its fight to have lawsuits of a similar nature elsewhere dismissed.
The EC's ruling on Tuesday not to press charges against THAI for allegedly conspiring with other major world carriers to drive up cargo freight rates has saved the flag carrier at least 500 million baht in possible fines.
Winning the case in the EU is only the beginning, as THAI still faces similar allegations in the US, Australia, New Zealand and South Korea.
"But the EC's ruling bodes well for our efforts to convince others that THAI is not engaged in wrongdoing," said Niruj Maneepun, vice-president for legal affairs and compliance.
The EC's decision shows the allegations were groundless and strengthens our efforts to show we abide by the rules of good corporate governance, he said.
THAI would use the favourable ruling in its other court fights, said Mr Niruj, adding the airline's legal advisers in the relevant countries have been co-ordinating a common approach.
The EC's decision not to charge THAI was the culmination of a four-year battle.
THAI is one of 11 airlines that escaped the EC charges. Eleven others including Singapore Airlines and Cathay Pacific were fined 8-200 million euros (326 million to 8.14 billion baht) apiece, said the THAI executive.
The eleven airlines were found guilty of forming a global cartel to fix air-freight tariffs, mainly fuel surcharges.
The EC said the airlines colluded on some surcharges between December 1999 and February 2006, when the investigation, which initially targeted more than 20 companies, started with unannounced raids at airline offices.
In 2006, THAI's Zurich and Frankfurt offices were raided by EC investigators who found documents and e-mails that suggested collusion.
The news lifted THAI's share price yesterday to a four-year high, closing at 47 baht, up two baht, in heavy trade worth 1.06 billion baht.
Credit: Bangkok Post (http://www.bangkokpost.com)
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