Post by corsair67 on Dec 29, 2007 15:48:01 GMT 12
Air NZ asked to explain freight prices
Steve Creedy | December 28, 2007.
AIR New Zealand is the latest airline to confirm it has received a please explain notice from European regulators about an investigation into a global price-fixing cartel involving as many as 25 airlines.
The airline confirmed yesterday it had received a Statement of Objection from the European Union that required it to respond to questions about its role in agreements among airlines to fix air cargo rates and surcharges by March 31. "Air New Zealand will not be making any further comment until the statement has been considered by the company's lawyers," it said.
The Air New Zealand statement comes after Qantas also confirmed this week that it had been given two months to explain its role in the international freight scandal.
Qantas has already admitted its part in the scam to the US Department of Justice and was fined $US61 million ($70 million) last month.
The latest European investigation is focused on claims of criminal behaviour by major airlines.
Other airlines which have received the EU demand include Singapore, Cathay Pacific and Air Canada.
A Qantas spokesman said yesterday: "Qantas is one of a number of airlines to have received the statement, which is a confidential document."
The carriers each risk fines of up to 10 per cent of their annual cargo revenue from Europe if found guilty. Qantas last year earned $902.5 million from its global freight business but not all of this was generated in Europe.
In the US case, Qantas was accused of conspiring with other airlines, and the freight industry generally, to fix and impose fuel surcharges in the air-cargo market between 2000 and last year.
The US DoJ said Qantas took part in meetings that discussed and set cargo rates on trans-Pacific routes.
Qantas is also being investigated by the Australian Competition and Consumer Commission and the Commerce Commission in New Zealand.
