New Zealand prosecuting three airlines on cargo price fixing

The New Zealand Commerce Commission has begun to prosecute three major airlines, claiming that they failed to provide investigators documents and other relevant information during an inquiry into price fixing and anticompetitive behaviour allegations in the air-cargo business.

The regulatory agency reported earlier this week that it filed criminal charges against Aerolineas Argentinas, Cathay Pacific Airways and Singapore Airlines.

Both Cathay Pacific Airways and Singapore Airlines’ cargo unit issued statements indicating that they plan to fight the charges. A spokesman for Aerolineas Argentinas wasn’t available for comment.

The New Zealand inquiry comes on the heels of an inquiry by the U.S. Justice Department into price fixing on cargo shipments into and out of the U.S. That investigation has led to eight airlines pleading guilty, including Cathay, which was slapped with a fine of US$60 million last month. U.S. officials determined that the collusion among the eight air cargo carriers may have added 10% to what consumers pay for electronics, medicines, produce and other goods that they handled.

The New Zealand Commerce Commission’s charges are related to allegations of non-compliance with statutory notices provided for by the nation’s Commerce Act. The notices had required that the airlines provide relevant documents and information to the commission by a date in November of 2007.

www.comcom.govt.nz