After
long denying complicity in price-fixing for air cargo rates, Air New Zealand
capitulated pleading guilty to Commerce Commission charges. The
High Court fined Air New Zealand $7.5 million and ordered it pay $560,000
towards the Commission’s investigation and legal costs.
The court was told Air
NZ collected extra revenue totalling $4.2 million over various cargo routes
during the period 2000-2006 for fuel and security surcharges considered
anti-competitive because they were the result of secret agreements with competitors
on the same cargo routes.
In mitigation, Air NZ
said these anticompetitive arrangements were not struck in New Zealand: they
were the work of an independent sales agent in Malaysia and regional company
managers in Australia and Japan. Air
NZ’s board and senior executives were not aware of what had been done in the
company’s name until after the event. In
Japan and Malaysia, local transport authorities had approved the
surcharges. Air NZ said it was not aware
that its failure to get similar approval in New Zealand would amount to a
breach of the price-fixing provisions in the Commerce Act.
Air NZ emphasised its
previous clean record, not previously being found in breach of the Act.
Commerce
Commission v. Air NZ – High Court (13.06.13)
13.015