New Zealand court fines Japan Airlines for price fixing

WELLINGTON, June 29 (Xinhua) -- A New Zealand court Friday fined Japan's national carrier 2.275 million NZ dollars (1.8 million U.S. dollars) after the airline admitted it colluded in price fixing on cargo flown to and from New Zealand.

Japan Airlines Co. Ltd. admitted agreeing to fix fuel and security surcharges in Europe, the United States and Asia for cargo flown to New Zealand, as well as for cargo flown from New Zealand to Asia, said a statement from New Zealand's Commerce Commission, which brought the case.

The penalty, which had been recommended by both the Commerce Commission and JAL as part of a pre-trial settlement, was imposed ay the High Court in Auckland.

It included a 35-percent discount to recognize JAL's admissions and ongoing cooperation with the commission's investigation, as well as payment of the costs to the commission.

"The commission is pleased to have settled with another airline. Wherever possible, if a party is prepared to admit liability we will seek to resolve issues through settlement," Commerce Commission general counsel, competition, Mary-Anne Borrowdale said in the statement.

The commission had filed proceedings against 13 airlines, including JAL, in December 2008, alleging they had colluded to impose fuel and security surcharges on cargo shipments into and out of New Zealand over a period of more than six years.

JAL was the fourth airline to settle with the commission in the case, following British Airways plc, Cargolux International Airlines S.A. and Qantas Airways Ltd..

The JAL penalty brought the amount obtained by the commission in settlements to 16.37 million NZ dollars.

The commission's case against the defending airlines was scheduled to continue in the High Court in Auckland in March next year.

At a first-stage hearing in August last year, the commission successfully argued that a "market in New Zealand" existed outside the country on inbound air cargo services.

The remaining defending airlines were Air New Zealand Ltd., Cathay Pacific Airways Ltd., Emirates, Korean Air Lines Co. Ltd., Malaysian Airlines System Berhad Ltd., Singapore Airlines Cargo Pte Ltd. and Singapore Airlines Ltd., and Thai Airways International Public Company Ltd..

In April last year the commission discontinued proceedings against PT Garuda Indonesia, United Airlines Inc. and six Air New Zealand executives.

Sourced: Xinhuanet