Air New Zealand off EU hook, but not free of NZ-Oz inquiries

WHILE Air New Zealand is off the hook for price fixing air cargo as far as the European Union is concerned, but authorities in the home county and Australia continue to pursue the airline and 12 others.

The European Commission had fined 11 airlines EUR800 million (US$1.1 billion) but dropped charges against 11 others, including Air New Zealand, reported Wellington's Dominion Post.

Air New Zealand said it had "been confident of its innocence since proceedings commenced in February 2006 so is not surprised by today's outcome".

But the New Zealand Commerce Commission wants to prosecute 13 airlines and seven airline staff for allegedly being involved in long-term cartel activity based on fuel surcharges to set the price of air cargo.

This affected the price of cargo both into and out of New Zealand. A High Court hearing in May will deliberate whether the Commerce Commission has the jurisdiction to apply the Commerce Act to in-bound cargo services.

Air NZ also faces similar proceedings in Australia and the United States as part of a global investigation into the air cargo cartel, but has not made any provisions in its accounts for possible fines, said the Post.

In the US, investigations have led to US$1.6 billion in fines and criminal charges against at least 18 airlines and eight executives so far. Airlines operating in the US, including Qantas, have admitted to fixing cargo rates and fuel and security surcharges introduced after the September 11, 2001, terrorist attacks on New York and Washington.

In some cases airlines were found to have increased fuel charges up to 1,000 per cent, the United States Justice Department said.
(Source:www.schednet.com)