Australia’s Federal Court has fined Air New Zealand US$9.5 million for its role in an air cargo cartel, the second-highest fine issued in the decade-long price-fixing investigation.
New Zealand’s national carrier and Indonesia’s PT Garuda were the two hold-outs protesting their innocence in Australia in the long-running price-fixing claim. The case has spanned multiple jurisdictions in several countries, and has been going well over a decade.
In Australia alone, thirteen other airlines have settled with the Australian Competition and Consumer Commission (ACCC).
Australia’s High Court last year rejected the appeal from Air New Zealand and Garuda. On Wednesday, June 27, the Federal Court ordered Air NZ to pay AU$11.5 million (US$9.5 million) for fixing fuel surcharges on cargo from Hong Kong to Australia and a further AU$3.5 million (US$2.6 million) over the insurance and security surcharge from Singapore to Australia. Air NZ also agreed to pay AU$2 million (US$1.5 million) towards the regulator’s costs.
“These illegal price fixing agreements unfairly reduced competition for the transport cost for goods flown into Australia,” ACCC commissioner Sarah Court said. “Our efforts over the last decade and these significant penalties make clear the ACCC’s commitment to tackling cartels.”
Full Content: Newsroom
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
