Air NZ released from US cargo probe

NZPA

Friday 8th July 2011

Air New Zealand says it has been "released" from a cargo cartel investigation by American authorities.

"US Department of Justice federal prosecutors have confirmed by letter that they have ended their investigation and Air New Zealand 'is no longer a subject or target of the ongoing grand jury investigation', " the airline said today.

“Air New Zealand welcomes this further step as it continues to demonstrate its innocence in respect of the cartel allegations,” said the airline's general counsel John Blair.

The airline said it was not among airlines fined last year for similar cartel behaviour by the European Commission and before that, regulators in South Korea had said Air New Zealand was not among airlines fined at the conclusion of their investigation.

Competition regulators around the world began investigations into the air cargo industry in 2005. Fines imposed to date on those airlines that have admitted guilt or been found guilty exceed $US1 billion.

Blair said Air New Zealand has conducted its business affairs in compliance with the laws of the countries that it serviced.

But the airline is still fighting price-fixing charges in New Zealand, where the Commerce Commission has so far gained settlements totalling $14.1m, including a penalty of $6.5m the High Court recently ordered Qantas to pay.

The commission also settled with British Airways and Cargolux International Airlines.

Airlines continuing to defend the domestic charges are Air New Zealand, Cathay Pacific Airways, Emirates, Japan Airlines International Co, Korean Air Lines Co, Malaysian Airlines System Berhad, Singapore Airlines Cargo Pte and Singapore Airlines, and Thai Airways International Public Company.

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