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July 17, 2008
SIA Cargo, 2 carriers face NZ court action linked to price-fixing
The New Zealand probe is part of a global investigation that started more than two years ago when news broke that a number of airlines - including SIA Cargo, Lufthansa, Cathay Pacific, Air NZ and British Airways - were being investigated by antitrust watchdogs. It is alleged that the airlines were involved in a global price-fixing cartel for their cargo business.
By Karamjit Kaur, Aviation Correspondent
CHARGES FILED: Cathay Pacific, together with SIA Cargo and Aerolineas Argentinas, has been accused of withholding information relevant to the case. -- PHOTO: AFP
SINGAPORE Airlines Cargo and two other international carriers are facing court action in New Zealand related to an alleged price-fixing cartel.

The country's fair trade watchdog, the Commerce Commission, has filed charges against the carriers, accusing them of withholding information.

It alleges that SIA Cargo, Cathay Pacific and Aerolineas Argentinas did not comply with notices issued last October seeking documents and information.

SIA Cargo, in a written response to queries from The Straits Times, stated yesterday: 'SIA Cargo denies any wrongful non-compliance.' It also vowed to 'vigorously defend allegations made'.

The airline added in its statement that its officers were cooperating and assisting the commission: 'SIA Cargo has answered all aspects of the notice relating to its NZ-based operations.

'However, the notice sought information on operations outside NZ. SIA Cargo believes those aspects of the notice asked more of it than the law requires, and are invalid.'

It is understood that Cathay Pacific is also contesting the commission's actions on the same grounds.

The NZ probe is part of a global investigation that started more than two years ago, when news first broke that a number of airlines, including SIA Cargo, Lufthansa, Cathay Pacific, Air NZ and British Airways (BA), were being investigated by antitrust watchdogs.

It is alleged that the airlines were involved in a global price-fixing cartel for their cargo business, including colluding to reach agreement and understanding on rates and other surcharges.

Investigations are pending in the United States, Europe, South Korea and Australia.

In the US, BA, Korean Air, Qantas and Japan Airlines have settled and agreed to pay record fines.

US courts have so far handed out penalties of US$1.2billion (S$1.6billion) against airlines for participation in an alleged cartel that fixed rates for air cargo coming in and out of the country.

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