May 18, 2010

Air New Zealand hits back at price-fix claim by ACCC

TheAustralian.com.au


AIR New Zealand has accused the Australian Competition & Consumer Commission of making a "jurisdictional and financial grab" after the competition watchdog yesterday launched Federal Court action against the Kiwi carrier for alleged air cargo price-fixing.

The ACCC alleges that Air NZ held talks with other airlines between 2002 and 2006 to fix the price of fuel surcharges and a security surcharge. It made similar allegations against Japan Airlines.

The ACCC said arrangements were reached in Singapore, Hong Kong and Japan for fuel surcharges for cargo originating in the three countries. Understandings were reached in Singapore and Hong Kong for the security surcharge.

Air NZ is the 15th airline to be caught up in the ACCC's action against an alleged freight cartel which has already seen Qantas fined $20 million, the second-biggest price-fixing fine in Australian history.

But the airline, which is also seeking ACCC approval for a trans-Tasman alliance with Virgin Blue, said the action appeared to have little to do with competition and Australian consumers.

"Air NZ is disappointed to today receive a statement of claim from the Australian Competition & Consumer Commission in an obvious jurisdictional and financial grab challenging the right of governments in places such as Hong Kong to regulate their own outbound air services and airfreight markets," said Air NZ general counsel John Blair.

"Air NZ will defend the allegations by the ACCC that it was one of nine airlines breaking Australian laws -- by complying with requirements of local regulators in Japan, Hong Kong and Singapore in relation to airfreight charges."

Mr Blair said the ACCC claims were based on "the fully transparent, formally recorded discussions among airlines for the purposes of obtaining approval for surcharges from regulators such as the Hong Kong Civil Aviation Department and the Japan Civil Aviation Bureau".