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WELLINGTON (New Zealand) - NEW
Zealand's Commerce Commission filed criminal charges Wednesday
against three international airlines, including Singapore
Airlines, for alleged price fixing in the
local air cargo market.
The commission said the charges
against Cathay Pacific Airways, Singapore Airlines and Aerolineas
Argentinas allege noncompliance with notices seeking documents and
information that were issued under New Zealand's Commerce Act in
October 2007.
The commission is investigating
allegations some airlines have colluded to reach agreements and
understandings on the level of cargo rates, including fuel
surcharges, on international flights to and from New Zealand,
Chairwoman Ms Paula Rebstock said in a statement.
If the airlines are found in
breach of section 103 of the Commerce Act they can be fined up to
NZ$30,000 (S$31,189.5). New Zealand's air cargo market is estimated
at about NZ$400 million a year.
The commission declined comment on
the air cargo market investigation but said if it concluded there
had been a breach of the Commerce Act, it would be file proceedings
in the High Court later this year.
Ms Rebstock defended the use of
statutory notices against the three carriers.
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'Any failure to comply with ...
statutory notices that form part of a commission investigation is a
serious enforcement issue,' she said.
'Cartels are insidious and cause
extensive damage to the New Zealand economy,' she added. 'They are
difficult to detect and extremely difficult to investigate because
of their secretive nature.'
A number of airlines are already
cooperating with the commission's investigation.
Overseas competition authorities
are also investigating air cargo price cartels.
In the US, British Airways, Korean
Air, Qantas and Japan Airlines have settled and agreed to pay
record fines. US courts so far have awarded penalties of US$1.2
billion (S$1.62 billion) against airlines for participation in an
alleged cartel that hiked air cargo rates to and from the US. --
AP