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New Zealand court fines Japan Airlines for price fixing

June 29, 2012

WELLINGTON: A New Zealand Court today fined Japan Airlines (JAL) NZ$2.275 million (about US$1.8 million) after the airline admitted it colluded in price fixing on cargo flown to and from New Zealand.

Japan Airlines Co Ltd admitted agreeing to fix fuel and security surcharges in Europe, the United States and Asia for cargo flown to New Zealand, and for cargo flown from New Zealand to Asia.

The penalty was imposed by the Auckland’s High Court and was recommended by the New Zealand’s Commerce Commission which brought the case and JAL as part of a pre-trial settlement, Xinhua news agency reported.

It included a 35% discount to recognise JAL’s admissions and ongoing cooperation with the commission’s investigation as well as payment of the costs to the commission.

The commission had filed proceedings against 13 airlines including JAL in December 2008, alleging they had colluded to impose fuel and security surcharges on cargo shipments into and out of New Zealand over a period of more than six years.

JAL was the fourth airline to settle the case with the commission after British Airways plc, Cargolux International Airlines S.A. and Qantas Airways Ltd.

The latest penalty brought the amount obtained by the commission in settlements to NZ$16.37 million (about US$13 million).

- Bernama


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