Cathay, other defendants, to contest 'NZ market' definition in Auckland court

HONG KONG's Cathay Pacific, Emirates, Japan Airlines, Korean, MAS, SIA and Thai Airways appear in New Zealand High Court in Auckland on Wednesday May 11 to contest the prosecution's definition of what constitutes a domestic market as applied in air cargo price-fixing charges against the carriers.


The first stage of the case focuses on whether the "air cargo market in New Zealand" applies to inbound air cargo can be said to be part of that market, reported the New Zealand Herald, adding that possible appeals on the first ruling would need to be heard before the second hearing, expected in July 2012..


It is understood that if the court finds the commission has no jurisdiction over the inbound market, the second part of the trial next year will be limited to the outbound market. Prosecutors say the airlines colluded to raise the price of freighting cargo.


Of this week's hearing, prosecuting New Zealand Commerce Commission lawyer Mary-Anne Borrowdale said: "We need to know whether deliberate collusion overseas to affect New Zealand markets is something that we can take enforcement action against."


Air New Zealand lawyer John Blair said his client has maintained from the start of the commission's investigation five years ago that it has not been in breach of the Commerce Act.


The Wellington-listed but largely state-owned airline has successfully defended its practices against similar charges from European Commission, and was again cleared after an investigation by the Korean Fair Trade Commission.


Qantas Airways, British Airways and Cargolux have agreed to pay fines between NZ$6 million (US$4.7 million) and NZ$1.6 million. Prosecutors have dropped charges against United Airlines, PT Garuda, Indonesia and six Air New Zealand executives.
(Source:http://www.schednet.com)