JAKARTA

National flag carrier Garuda Indonesia denied on Wednesday it had engaged in price-fixing after the country’s business regulator ruled it had illegally inflated prices.

The Commission for the Supervision of Business Competition (KPPU) fined nine local airlines Rp585 billion (US$64 million for forming a cartel to fix fuel surcharges and pass on the costs to passengers.

It found that customers of the airlines had lost around $1.5 billion through the scam.

Garuda spokesman Pudjobroto said the company, which is set to raise around $500 million through a public offering this year, was considering an appeal.

“We firmly reject the KPPU ruling,” he said.

“We all know that the application of a fuel surcharge is common in the airline industry around in the world. Fuel surcharges are applied by airlines in relation to fuel price increases.”

The competition watchdog fined Garuda Rp187 billion for its part in the fraud.