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QANTAS has agreed to plead guilty to cargo price-fixing by levying fuel surcharges on freight shipments into and out of New Zealand, after reaching an out of court settlement with the New Zealand Commerce Commission to avoid a court hearing in May.
British Airways and South African airline Cargolux have also agreed settlements with the commission, after admitting liability that will involve fines.
In a statement Qantas Freight admitted to price-fixing conduct within its freight division between 2000 and 2006. Although the terms of the settlement are confidential, it recommended to the New Zealand High Court that it will pay a fine of NZ$6.5 million (US$4.8 million), which includes a 50 per cent discount for the airline's cooperation with the commission in its investigation of a price-fixing cartel, reports Air Transport World.
It said the penalty hearing has been scheduled for April 11. The carrier was quoted as saying it "will plead guilty to participating in the cartel with other international airlines, including Air New Zealand."
Qantas' plea angered Air New Zealand which also slammed the release of a statement by the New Zealand Commerce Commission saying the Australian airline has agreed to plead guilty to cargo price-fixing.
"Settling with parties who are prepared to acknowledge wrongdoing is consistent with the commission's enforcement strategy. We aim to achieve the swiftest resolution of our enforcement proceedings in the most cost-effective way," said commission enforcement counsellor Mary-Anne Borrowdale, according to the Auckland-based National Business Review.
It said the commission has at the same time scrapped the case against United Airlines.
"We continue to focus our case and direct our efforts towards those airlines with large turnover in New Zealand markets," said Ms Borrowdale.
"The commission is preparing to test whether it can pursue price-fixing conduct that occurs overseas. We need to know whether deliberate collusion overseas, to affect New Zealand markets, is something that we can take enforcement action against. Our efforts to streamline and focus the case have that central issue in mind," said Ms Borrowdale.
Air New Zealand has criticised the press releases by the Commerce Commission and Qantas for being "misleading and defamatory."
Said ANZ lawyer John Blair: "In announcing penalties agreed between the Commission and Qantas, British Airways and Cargolux, the commission's 'background' fails to note that none of the investigations referred to by the commission have resulted in a finding of illegal conduct by Air New Zealand.
"The commission's media release leaves an impression that all airlines involved in all jurisdictions are guilty and simply 'awaiting hearing' or 'awaiting trial.' That is simply not true and the commission knows it."
Mr Blair added that the airline was "surprised at Qantas's claim that its own illegal conduct included communication with ANZ. Qantas has acknowledged that in a number of off-shore jurisdictions it participated in widespread criminal behaviour, whereas neither Air New Zealand nor any Air New Zealand employees have been found guilty of such behaviour."
The Qantas Freight settlement with New Zealand anti-trust authorities is the latest in a series of penalties for cargo price-fixing activities in an alleged cartel that has resulted in investigations and the netting of a significant number of major airlines from around the world.
The carriers defending price-fixing allegations made by New Zealand's Commerce Commission are: Air New Zealand, Cathay Pacific, Emirates, Japan Airlines, Korean Air Lines, Malaysian Airlines, PT Garuda Indonesia, Singapore Airlines Cargo and Singapore Airlines, and Thai Airways. The remainder of the case is due to start in July 2012.
(Source:http://www.schednet.com)
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