Air NZ accuses Qantas of defamatory conduct
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- Air New Zealand has come out swinging after Qantas said it was helping the New Zealand Commerce Commission prosecute it for alleged freight price-fixing.
Qantas announced yesterday that it had reached a settlement with the commission that would see the regulator recommend to the New Zealand High Court a $NZ6.5 million ($4.8m) fine for its part in a price-fixing cartel operating between 2000 and 2006.
This included a 50 per cent discount for the Australian carrier's co-operation.
"The penalty hearing is set for April 11, 2011, at which time Qantas will plead guilty to participating in the cartel with other international airlines, including Air New Zealand," the Qantas announcement said.
An incensed Air NZ accused the commerce commission and Qantas of making "defamatory and misleading" statements.
It accused the commission of inferring that all airlines in all jurisdictions were guilty and awaiting trial but said none of them had resulted in a finding of illegal conduct by Air New Zealand.
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It was also surprised at the Qantas claim that its "own illegal conduct" had included communication with Air NZ.
"Qantas has acknowledged in a number of offshore jurisdictions that it participated in widespread criminal behaviour, whereas neither Air New Zealand nor any Air New Zealand employees have been found guilty of such behaviour," it said.
"Qantas has previously attempted to deflect attention from its own illegal conduct by making similar claims of Air New Zealand involvement to another investigator but this was given no weight. Qantas appears to be pursuing a strategy of trying to implicate other airlines in cartel investigations in the hope of securing more lenient treatment of its own conduct."
The New Zealand fine is the latest in a string of penalties that have resolved liability by Qantas in the US, Australia, Canada, South Korea and Europe.
The Kiwi commission also reached settlements with Qantas partner British Airways and Cargolux but did not release details. It is expected to proceed with action against nine other airlines, including Air New Zealand, but has dropped a case against United Airlines.