It's only a possible $NZ30,000 fine but it all comes off the bottom line. It's about time someone was held accountable.
NZ commission files airline charges
The NZ Commerce Commission is taking three international airlines to court alleging poor disclosure while it probes allegations of price fixing in the $NZ400 million air cargo market.
The commission said it has filed criminal charges in Auckland District Court against Cathay Pacific Airways, Singapore Airlines and Aerolineas Argentinas.
The charges allege non-compliance with notices seeking documents and information issued under the Commerce Act in October 2007.
If the airlines are found to be in breach of section 103 of the Commerce Act they can be fined up to $NZ30,000.
The commission declined to comment on the air cargo market investigation but said if it concluded there was a breach of the Commerce Act proceedings would be filed in the High Court later this year.
The commission on Wednesday defended the use of statutory notices.
"Any failure to comply with commission statutory notices that form part of a commission investigation is a serious enforcement issue," said chairwoman Paula Rebstock.
"Cartels are insidious and cause extensive damage to the New Zealand economy. They are difficult to detect and extremely difficult to investigate because of their secretive nature."
The commission is investigating allegations that certain airlines have colluded and reached agreements and understandings on the level of cargo rates, including fuel surcharges on international flights to and from New Zealand.
Airlines earn more than an estimated $NZ400 million each year transporting air cargo to and from New Zealand. A number of airlines are cooperating with the commission's investigation.
Overseas competition authorities are also investigating the air cargo market.
In the United States British Airways, Korean Air, Qantas and Japan Airlines have settled and agreed to pay record fines.
In total, the US courts have already awarded penalties of $US1.2 ($NZ1.57) billion against airlines for participation in a cartel that has increased air cargo rates to and from the United States.
Companies or individuals who bring a cartel to the commission's attention can gain immunity from prosecution through the commission's leniency programme.
Australian law firm Maurice Blackburn Cashman has filed a class action in the Australian Federal Court against Qantas, Lufthansa, Singapore Airlines, Cathay Pacific, Air New Zealand, JAL and British Airways on behalf of thousands of international freight users.
It alleged the airlines formed a cartel to fix fuel, security and war-risk surcharges against Australian freight users, who were fleeced an estimated $A200m ($NZ256m) over seven years.