British Airways Qantas and Cargolux International Airlines have settled a case over an alleged air cargo price fixing cartel.
Qantas is reported to have agreed to pay NZ$6.5 million but no other figures have emerged. New Zealand’s Commerce Commission competition regulator reached settlements with the three airlines charged in a major cartel proceeding, ahead of the first hearing in the case scheduled for May.
Qantas, BA and Cargolux have agreed settlements with the Commission, which involve admitting liability and paying “significant” penalties, a statement said. “The Commission cannot release further information about these settlements until they have been reviewed by the court.”
The case goes back to December 2008 when the commission started proceedings against 13 international airlines, alleging that they colluded to raise the price of freight cargo by imposing fuel surcharges on shipments into and out of New Zealand over more than seven years.
The commission has discontinued the case against United Airlines. The airlines defending this action are Air New Zealand, Cathay Pacific, Emirates, Japan Airlines, Korean Air, Malaysian Airlines, Garuda Indonesia, Singapore Airlines Cargo, Singapore Airlines, and Thai Airways.
Commission general counsel of enforcement Mary-Anne Borrowdale said: “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. We continue to focus our case and direct our efforts towards those airlines with large turnover in New Zealand markets.”