Japan Airlines to pay US$1.79 million for New Zealand price fixing

THE High Court of New Zealand has ordered Japan Airlines (JAL) to pay a NZ$2.275 million (US$1.79 million) fine for air cargo price-fixing regarding fuel and security surcharges in services from Europe, the US and Asia to New Zealand as well as from New Zealand to Asia.

Since JAL admitted the price-fixing charge and cooperated with the Commerce Commission's investigation, such amount of penalty included a 30 per cent reduction, reported New Zealand's voxy.co.nz, adding that JAL also consented to pay costs.

JAL is the fourth of the 13 airlines to settle the case with the commission, which sued those airlines in December 2008 for price fixing of fuel and security surcharges on air cargo shipment into and out of New Zealand.

Other airlines that have settled the case are British Airways, Cargolux International Airlines and Qantas Airways.

The commission's case against the defending airlines will continue in the High Court in Auckland in March 2013, following a first-stage hearing that was held in August 2011.

The defending airlines include Air New Zealand, Cathay Pacific Airways, Emirates, Korean Air Lines, Malaysian Airlines System, Singapore Airlines Cargo, Singapore Airlines and Thai Airways.

Including the JAL penalty, the total amount paid by airlines in settlements has reached NZ$16.375 million.