Air New Zealand fined for international cargo price fixing

New Zealand's national carrier on Thursday was ordered to pay a penalty of 7.5 million NZ dollars (5.96 million U.S. dollars) for its role in an international price- fixing cartel that jacked up air cargo prices into the country.

The High Court approved the penalty against Air New Zealand, making it the last of 11 international airlines to settle with New Zealand's Commerce Commission in its long-running air cargo cartel case.

Total penalties in the case amounted to 42.5 million NZ dollars, after the commission previously reached settlements with British Airways, Cargolux, Cathay Pacific, Emirates, Korean Air, MASKargo, Qantas, Japan Airlines, Singapore Airlines Cargo and Thai Airways.

Air New Zealand admitted colluding on fuel surcharges and security surcharges in Japan and Malaysia from 2001 to 2006 for cargo flown into New Zealand, said a statement from the commission.

Air New Zealand did not contest allegations concerning fuel surcharges in Australia in 2000 for cargo flown into New Zealand.

The penalties should act as a deterrent to other companies, Commerce Commission Mark Berry said in the statement.

"The penalties are also a reminder to companies that it is important to have effective compliance programs in place to prevent anti-competitive behavior," he said.

Air New Zealand was among 13 airlines the commission filed proceedings against in December 2008, alleging that the airlines colluded to impose fuel and security surcharges for air cargo shipments to and from New Zealand.

In April 2011, the commission discontinued its proceedings against PT Garuda Indonesia and United Airlines Inc.