New Zealand charges air carriers in price fixing probe

Singapore Airlines, Aerolineas Argentinas, and Cathay Pacific have been charged by New Zealand’s Commerce Commission for failing to provide information regarding a probe investigating price fixing in the air cargo industry. The industry for air cargo is estimated to be around 400 million dollars a year.

Paula Rebstock who is the chairwoman for the Commerce Commission said “Any failure to comply with Commission statutory notices that form part of a Commission investigation is a serious enforcement issue. Cartels are insidious and cause extensive damage to the New Zealand economy. They are difficult to detect and extremely difficult to investigate because of their secretive nature.”

The Commerce Commission has resquested documents relating to the probe that have yet to be handed over by the air carriers. Charges include collusion on fuel charges and cargo rates. If the airlines are found guilty of the charges they each face fines of up to 30,000 dollars.

A similar probe in the United States has resulted in fines amounting to over 500 million dollars from several air carriers including British Airways, Cathay Pacific, Japan Airlines, and Air France KLM.

Singapore Airlines has denied any wrong doing and released a statement that said “SIA Cargo has not sought to impede the Commerce Commission’s investigation in any way. SIA Cargo has answered all aspects of the notice relating to its New Zealand -based operations. It has also made available officers to assist the NZCC with its investigation and is cooperating.”

www.singaporeair.com
www.aerolineas.com.ar
www.cathaypacific.com
www.comcom.govt.nz