New Zealand starts air cargo cartel probe

 New Zealand authorities have initiated an investigation against 13 airlines for price fixing cargo rates in and out of the country, international media outlets reported Monday.



   The country's Commerce Commission has concluded that the airlines colluded to fix fuel and security surcharges between 2000 and 2006. Many of the airlines are the same that fell afoul of a similar investigation by the U.S. Justice Department that has yielded $1.2 billion in penalties from five airlines.



   The airlines to be prosecuted are: Air New Zealand, British Airways, Cargolux International, Cathay Pacific, Emirates, Garuda International, Japan Airlines, Korean Airlines, Malaysian Airline Systems, Qantas, Singapore Airlines, Thai Airlines and United Airlines.



   Officials from Air New Zealand, Cathay and Singapore Airlines have publicly refuted the charges, while BA and Qantas have allegedly agreed to cooperate in order to have potential penalties reduced.



   New Zealand Commerce Commission Chairwoman Paula Rebstock told Dow Jones she expects penalties to run into the tens of millions of dollars, saying it affected revenue of $1.58 billion until it stopped in 2006. The investigation could eventually spread to 60 airlines, but the commission focused initially on the 13 biggest airlines most directly involved in the alleged collusion.



   We will be arguing this is, if not the most serious cartel we have seen in New Zealand, one of the most, she told the news service.

Source: American Shipper