[270413.EN.AIR] New Zealand Orders Cathay Pacific to Pay US$3.6 Million For Price Fixing

HONG KONG's Cathay Pacific Airways has been ordered to pay a NZ$4.3 million (US$3.6 million) fine by New Zealand High Court for operating a cartel on cargo flown into New Zealand, announced the country's Commerce Commission.

Also fined was Malaysia's MASkargo System - NZ$2.6 million - and Thai Airways International - NZ$2.7 million - for being engaged in the same cartel between February 2000 and February 2006.

Three major international airlines have been penalised with fines totalling NZ$9.6 million. The latest penalties bring the total number of airlines fined to 10 and the total penalties to NZ$35 million.

"The penalties are a reminder to both New Zealand and overseas that colluding on prices is illegal and may result in substantial penalties under the Commerce Act. The commission is committed to pursuing cartels that affect New Zealand markets," said Commerce Commission chairman Mark Berry.

Air New Zealand is refusing to comment on reports that it is talking to the Commerce Commission about a possible resolution to the long running air cargo cartel case now that there is only carrier left to settle.

"This matter is before the courts and it's inappropriate for us to comment," a spokeswoman said.

Three more airlines have settled with the Commerce Commission in the long-running air cargo cartel case. The regulator dropped proceedings against Garuda Indonesia, United Airlines and six Air New Zealand executives last year, and discontinued against two Qantas executives in February last year.

Source : HKSG.