Information issue resolved ahead of air cargo case

Wednesday 27th April 2011

The Commerce Commission has withdrawn charges against Singapore Airlines Cargo and Cathay Pacific Airways for failing to supply information ahead of its court case alleging price fixing in the air cargo market.

The airlines have now supplied further information after the commission had alleged that they had not fully complied with statutory notices seeking information.

The case alleging airlines colluded to raise the price of freighting cargo is against Air New Zealand, Cathay Pacific Airways, Emirates, Japan Airlines International Co, Korean Air Lines Co, Malaysian Airlines System Berhad, Singapore Airlines Cargo and Singapore Airlines, and Thai Airways International Public Company. The conduct is alleged to have occurred over a period of more than seven years.

The first stage of the case will determine the issue of defining the market and it starts on May 11 and the rest of the case will begin in July 2012.

On April 5, the High Court imposed penalties against British Airways and Cargolux International Airlines. Cargolux was ordered to pay $6 million and BA $1.6 million. In both these judgments, the court noted that it was making no findings in respect of the airlines that continue to defend the proceedings.

The commission has also resolved the proceedings against Qantas Airways, which admits its participation in the cartel.

NZPA

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