Australian regulator accuses Air NZ, JAL of price fixing

AUSTRALIAN competition regulator has launched legal action in the Federal Court against Air New Zealand and Japan Airlines International for allegedly fixing prices in the air cargo industry, reported the Australian Associated Press.

But the New Zealand Press Association reported that Air NZ general counsel John Blair said the Australian Competition and Consumer Commission (ACCC) claims were based on "the fully transparent, formally recorded discussions among airlines for the purposes of obtaining approval for surcharges from regulators such as the Hong Kong Civil Aviation Department and the Japan Civil Aviation Bureau".

Said Mr Blair: "Air NZ will defend the allegations by the ACCC that it was one of nine airlines breaking Australian laws - by complying with requirements of local regulators in Japan, Hong Kong and Singapore in relation to airfreight charges."

The development means that Air New Zealand and Japan Airlines International have become the 14th and 15th airlines to face similar charges, according to a statement from the Australian Competition and Consumer Commission (ACCC).

The ACCC alleges that between 2002 and 2006 both airlines entered into "arrangements or understandings with other international air cargo carriers that had the purpose or effect of fixing the price of a fuel surcharge and a security surcharge that were applied to air cargo carried by them and other airlines."

"The ACCC alleges that arrangements or understandings were reached in Singapore, Hong Kong and Japan for fuel surcharges applied to cargo originating in those countries," the ACCC said.

"The ACCC also alleges arrangements or understandings were reached in Singapore and Hong Kong for a security surcharge applied to cargo originating in those countries," said the agency statement.

The ACCC is seeking declarations, injunctive relief, fines and costs. A directions hearing has been scheduled in the Federal Court for June 10.

The ACCC has already proceeded against Singapore Airlines Cargo, Cathay Pacific Airways, Emirates, PT Garuda Indonesia, Thai Airways International, Korean Air Lines, Malaysian Airline System Berhad and its wholly-owned cargo subsidiary Malaysia Airlines Cargo.

Source: www.schednet.com