Three Asian Airlines Fined For Price Fixing Cargo Shipments

April 22, 2013
Latest penalties bring the total number of airlines penalized in the price fixing case to 10.

WELLINGTON, April 22 -- Three major international airlines have been penalized a total of $8.06 million U.S. dollars for operating a cartel on cargo flown into New Zealand, the country's Commerce Commission announced Monday.

The latest penalties bring the total number of airlines penalized in the price fixing case to 10 and the total penalties to 35 million NZ dollars.

The latest High Court judgment saw Cathay Pacific Airways Ltd. ordered to pay $4.3 million NZ dollars, Thai Airways International PLC. $2.7 million NZ dollars and Malaysian Airlines subsidiary MASkargo System Berhad Ltd. $2.6 million NZ dollars for price fixing between February 2000 and February 2006.

"The penalties are a reminder to both New Zealand and overseas- based companies that colluding on prices is illegal and may result in substantial penalties under the Commerce Act. The commission is committed to pursuing cartels that affect New Zealand markets," Commerce Commission chair Dr Mark Berry said in the statement.

The commission filed proceedings against 13 airlines in December 2008, alleging they had colluded to impose fuel and security surcharges for air cargo shipments to and from New Zealand. (PNA/Xinhua) Published by HT Syndication with permission from Philippines News Agency. For any query with respect to this article or any other content requirement, please contact Editor at [email protected]

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