16 December 2008

Cartel busters swoop on airlines again

WELLINGTON ââ¬' Several airline chiefs will be looking over their shoulders, expecting a tap on the shoulder from regulatory watchdogs keen to stamp out price fixing by international airlines.

New Zealandââ¬â¢s antitrust regulator has filed proceedings against 13 airlines alleging their cargo units acted as a cartel and unfairly increased prices. Seven airline staff, including senior executives, are also being pursued by the NZ Commerce Commission.

The airlines named are Air New Zealand, Qantas, British Airways, Cargolux, Cathay Pacific, Emirates, Garuda Indonesia, Japan Airlines, Korean Airlines, Malaysian Airlines, Singapore Airlines, Thai Airways International and United Airways.

Last week Qantas was ordered to pay A$20 million in penalties for price fixing and British Airways was slugged A$5 million following an investigation by the Australian Competition and Consumer Commission.

In addition to fixing fuel surcharges, the NZ Commerce Commission alleges that a number of airlines conspired to price fix through the imposition of a security surcharge immediately following the 9/11 terrorist attacks.

Regulators worldwide including the US Department of Justice and the European Commission have investigated airlines for price fixing of fuel surcharges at their cargo units.

A former Qantas freight boss was jailed and fined by US authorities for his part in the cartel.

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