Air New Zealand has been slapped with a $15 million fine after they were found to be fixing prices on freight services and operating a global air cargo cartel.
The Federal Court found that Air NZ made illicit agreements with other airlines to fix the prices of charges and surcharges on services from Hong Kong and Singapore to various locations between 2002 and 2007.
Those locations included multiple Australian airports.
Air New Zealand has been slapped with a $15 million fine after they were found to be fixing prices on freight services and operating a global air cargo cartel
The ACCC ordered legal action against the airline following an investigation into the air cargo cartel, which they first launched in 2006
‘These illegal price fixing agreements unfairly reduced competition for the transport cost for goods flown into Australia,’ said Sarah Court, commissioner of The Australian Competition and Consumer Commission.
The ACCC ordered legal action against the airline following an investigation into the air cargo cartel, which they first launched in 2006.
‘Our efforts over the last decade and these significant penalties make clear the ACCC’s commitment to tackling cartels,’ Ms 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.’
Air NZ was made to pay a fine of $11.5 million for price fixing in relation to fuel surcharges from Hong Kong to Australia, and $3.5 million in relation to insurance and security surcharge from Singapore to Australia
The Court ordered Air NZ to pay a fine of $11.5 million for price fixing in relation to fuel surcharges from Hong Kong to Australia, as well as an additional $3.5 million in relation to insurance and security surcharge from Singapore to Australia.
The airline has agreed to pay a further $2 million towards the ACCC’s legal costs.
Various airlines in Europe, the United States, Korea, Canada and India have also been hit with fines and penalties as competition regulators around the world crack down the air cargo cartel.
The Federal Court has thus far imposed penalties totalling $113.5 million in relation to 14 different airlines involved – including Qantas, who were ordered to pay a pecuniary penalty of $20 million in December of 2008.
The Federal Court has thus far imposed penalties totalling $113.5 million in relation to 14 different airlines involved with the air cargo cartel – including Qantas, who were ordered to pay pecuniary penalty of $20 million