New Zealand prosecutors drop cartel case against Air NZ execs

NEW ZEALAND's prosecuting Commerce Commission has dropped its case against PT Garuda Indonesia and six Air New Zealand executives ahead of the first hearing of the air cargo cartel case next month.


"Discontinuing against these parties is part of the commission's overall strategy to streamline and focus the case on those airlines with large turnover in New Zealand markets," said prosecutor Mary-Anne Borrowdale.


The commission's case alleging freighting cargo price fixing continues against Air New Zealand, Cathay Pacific, Emirates, Japan Airlines International, Korean Air Lines, Malaysian Airlines, Singapore Airlines and Thai Airways, reported New Zealand's National Business Review.


Prosecutions started in 2008 against 13 carriers and eight airline executives, alleging the airlines colluded to raise air freight prices through fuel surcharges.


On April 5, the High Court imposed penalties against British Airways and Cargolux International Airlines. Cargolux was ordered to pay NZ$6 million (US$4.7 million) and BA was ordered to pay penalties of NZ$1.6 million. The commission also recommended to the court that it impose a NZ$6.5 million fine on Qantas.
(Source:http://www.schednet.com)