Reuters - 1 hour 25 minutes
ago
WELLINGTON, July 16 - New Zealand's competition watchdog has
filed criminal charges against Singapore Airlines <SIAL.SI>,
Cathay Pacific <0293.HK> and Aerolineas Argentinas for not
providing information sought as part of its investigation into
alleged price-fixing, it said on Wednesday.
The Commerce Commission said it was investigating allegations
that some airlines had colluded and reached agreements on cargo
rates, including international fuel surcharges, on flights to and
from New Zealand.
It said it had ordered the three airlines to provide information
for its investigation by a specific date in November, but they had
not complied.
"Any failure to comply with commission statutory notices that
form part of a commission investigation is a serious enforcement
issue," Commission Chair Paula Rebstock said in a statement.
Charges had been filed with the District Court and the firms
could be fined up to NZ$30,000 each if found guilty.
Rebstock said if its broader investigation concluded that there
was a case for price-fixing, it would file proceedings with the
High Court.
"Cartels are insidious and cause extensive damage to the New
Zealand economy," she said.
Air cargo services to and from New Zealand are worth more than
NZ$400 million a year.
Regulators in the United States, the European Union and
Australia have been pursuing airlines over alleged air cargo price
fixing.
Last month Air France-KLM <AIRF.PA> and three other
airlines agreed to pay fines totalling $504 million to settle a
case brought by U.S. anti-trust officials.
Last year, British Airways Plc <BAY.L> and Korean Air
Lines <003490.KS> pleaded guilty and agreed to each pay a
$300 million criminal fine for conspiring to fix cargo rates for
international air shipments and to fix passenger fuel surcharges or
fares for some routes.
On Jan. 14, 2008, Australia's Qantas Airways <QAN.AX>
agreed to pay a $61 million criminal fine for cargo price-fixing.
And last month, Japan Airlines <9205.T> was sentenced to pay
a $110 million criminal fine for similar price-fixing.