SOUTH KOREA : Korean Airlines drawn into Oz class action suit

Korean Airlines has been dragged into a long-running class action suit over price fixing in the air cargo market, thanks to the other alleged participants, including Qantas, Singapore Airlines and Cathay Pacific.


Korean Airlines


SOUTH KOREA : Korean Airlines drawn into Oz class action suit

Korean Airlines has been dragged into a long-running class action suit over price fixing in the air cargo market, thanks to the other alleged participants, including Qantas, Singapore Airlines and Cathay Pacific. The Australian Federal Court has allowed two members of the alleged cartel, Singapore Airlines and Cathay Pacific, to add Korean Airlines as a cross-respondent. Meanwhile, Korean Air says a sharp drop in electronics exports out of South Korea sent the airline’s cargo traffic down 8.4 per cent in the second quarter from the same period a year ago. Outbound air cargo from Korea fell 30 per cent in the quarter, Korean Air said, including a 71 per cent plunge in computer display terminals and an 11 per cent drop in cell phones. The decline was partly offset by strong gains out of Japan, which was up 13 per cent and Europe, up 12 per cent. But Korean Air gets as much as 38 per cent of its cargo revenue from its home market, and demand for high-value goods has been falling with the weaker global economy. But the carrier cut its capacity 6.1 per cent in the second quarter from the same period last year which helped it improve its yield 4 per cent from a year ago, and 9.8 per cent from the first quarter to the second quarter.