NZ fines Cargolux, BA $5.8m

NEW Zealand’s High Court has fined Cargolux and British Airways (BA) for their part in a cargo price-fixing cartel.

The Court announced penalties of NZ$6 million (US$4.6 million) to Cargolux and NZ$1.6 million ($1.2 million) to BA for colluding to set fuel surcharges on airfreight into and out of New Zealand. Cargolux also admitted to agreeing airfreight security surcharges.

Justice Potter noted, in her Cargolux judgment, that the arrangements “were at the serious end of the spectrum” and that “the conduct would have adversely affected both price competition and the competitive dynamics in the air cargo services industry, with a corresponding reduction in efficiency incentives for members of the cartel.”

“The penalties reflect discounts for both airlines, to take account of their early admissions and their cooperation with the Commission’s proceeding. BA has received a greater discount, because of its commitment to further cooperation as the case progresses, but in each case the Court has acknowledged the value to this agency of receiving assistance from the parties involved,” said Commission general counsel of enforcement, Mary-Anne Borrowdale.

Airlines continuing to defend themselves are: Air New Zealand, Cathay Pacific Airways, Emirates, Japan Airlines International, Korean Air Lines, Malaysian Airlines System, PT Garuda Indonesia, Singapore Airlines Cargo and Singapore Airlines, and Thai Airways International.

Last month New Zealand’s anti-cartel Commerce Commission announced it had agreed settlements with the two carriers and Qantas. Qantas revealed its settlement would be NZ$6.5 million ($4.7 million).

“The penalties reflect discounts for both airlines, to take account of their early admissions and their cooperation with the Commission’s proceeding,” said Commission General Counsel of Enforcement, Mary-Anne Borrowdale. “BA has received a greater discount, because of its commitment to further cooperation as the case progresses, but in each case the Court has acknowledged the value to this agency of receiving assistance from the parties involved.”