NZ regulator spotlight on fuel surcharges catches Air NZ
By Paul McBeth
Dec. 15 – The Commerce Commission is pursuing 13 airlines and seven executives for allegedly price fixing on air
freight services.
The Commission alleges the airlines, including Air New Zealand Ltd., colluded to impose fuel surcharges for more
than nine years “under the auspices of the trade organisation International Air Transport Association”. It also claims
some of the carriers conspired to fix prices by imposing a security surcharge immediately following the terror attacks
of 2001.
“The Commission will continue to strongly pursue cartels involved in price-fixing and other anti-competitive
conduct,” said chair Paula Rebstock in a statement. “Participation in cartel activity is internationally regarded as one
of the most egregious forms of anti-competitive behavior.”
The air freight market to and from New Zealand is estimated to be worth more than NZ$400 million annually, and
total revenue over the period of the agreement is believed to be almost NZ$3 billion. Any airlines convicted face
whichever penalty is the highest of NZ$10 million, three times the commercial gain or 10% of the group’s annual
turnover.
The Commission has limited its investigation to those carriers with the greatest impact on New Zealand, along
with the “most culpable individuals.”
In a statement, the watchdog said “some airlines are cooperating with the Commission and an early resolution may
be possible,” although these have not been named.
The investigation is part of a worldwide case that potentially involves 60 airlines, and the airlines are under
similar scrutiny by other competition watchdogs including the U.S. Department of Justice, the Australian Competition and
Consumer Commission and the European Commission.
The 13 companies named are: Air NZ; British Airways Plc; Cargolux International Airlines S.A; Cathay Pacific
Airways Ltd.; Emirates; PT Garuda Indonesia; Japan Airlines International Co.; Korean Airlines Co.; Malaysian Airline
System Berhad Ltd.; Qantas Airways Ltd.; Singapore Airlines Cargo Pte and Singapore Airlines Ltd; Thai Airways
International Public Co.; United Airlines Inc.
(Businesswire)
ENDS