Australia air cargo cartel case: Air NZ fined $16m

SYDNEY • Air New Zealand was fined A$15 million (S$16 million) yesterday by an Australian court for its part in a global air cargo cartel involving major international airlines.

The carrier was taken to court by the Australian Competition and Consumer Commission (ACCC) over allegations it had agreements with other airlines to fix the price of fuel and insurance surcharges on freight services to and from international airports from 2002 to 2007.

"These illegal price-fixing agreements unfairly reduced competition for the transport cost for goods flown into Australia," ACCC commissioner Sarah Court said.

"This decision sends a strong warning to overseas and domestic operators that the ACCC can and will continue to defend competition and the rights of Australian customers and businesses by taking action against anti-competitive conduct."

The Federal Court of Australia ordered Air New Zealand to pay A$11.5 million for fixing fuel surcharges for cargo from Hong Kong to Australia, and A$3.5 million for insurance and security surcharge fixing from Singapore to Australia.

Air New Zealand, which also agreed to pay A$2 million of the ACCC's legal costs, said in a statement it was glad the issue was resolved.

"We have worked closely with the ACCC over the past year to reach this position, which is in line with previous settlements reached with other international airlines," the carrier added.

So far, 14 airlines have been penalised a total of A$113.5 million since investigations started in 2006. They include Qantas, Emirates, Singapore Airlines, British Airways and Air France-KLM.

AGENCE FRANCE-PRESSE

A version of this article appeared in the print edition of The Straits Times on June 28, 2018, with the headline 'Australia air cargo cartel case: Air NZ fined $16m'. Print Edition | Subscribe