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Air New Zealand settles for US$35 million fearing injustice from US court
INSISTING on its innocence, Air New Zealand has agreed to settle a cargo cartel case in the United States for NZ$52 million (US$35 million), reports the New Zealand Herald.
"There was no credible evidence that any Air New Zealand employee participated in any conspiracy, but the potential for an unexpected verdict was not an acceptable commercial risk for the airline," said John Blair, Air New Zealand's general counsel.
The case dates back to 2006, when a civil compensation claim was filed on behalf of several freight forwarders naming a significant number of global airlines, including Air New Zealand, for alleged conspiracy involving air cargo fuel and security surcharges between 2000 and 2006.
"This is purely a question of mitigating an unacceptable risk created by the US class action system which creates enormous pressure to settle such matters commercially," said Mr Blair.
The settlement is subject to approval by the court in New York.
Under US law, every participant in a conspiracy is liable for the harm caused by the entire conspiracy regardless of the extent of their participation. When a conspiracy involves "anti-trust" (anti-competitive) conduct, the entire damages are trebled. The settlement amount of US$35 million represents 2.8 per cent of the US$1.2 billion paid in settlements by 28 airlines.
"There was no credible evidence that any Air New Zealand employee participated in any conspiracy, but the potential for an unexpected verdict was not an acceptable commercial risk for the airline," said John Blair, Air New Zealand's general counsel.
The case dates back to 2006, when a civil compensation claim was filed on behalf of several freight forwarders naming a significant number of global airlines, including Air New Zealand, for alleged conspiracy involving air cargo fuel and security surcharges between 2000 and 2006.
"This is purely a question of mitigating an unacceptable risk created by the US class action system which creates enormous pressure to settle such matters commercially," said Mr Blair.
The settlement is subject to approval by the court in New York.
Under US law, every participant in a conspiracy is liable for the harm caused by the entire conspiracy regardless of the extent of their participation. When a conspiracy involves "anti-trust" (anti-competitive) conduct, the entire damages are trebled. The settlement amount of US$35 million represents 2.8 per cent of the US$1.2 billion paid in settlements by 28 airlines.
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