NZ watchdog takes 13 airlines to court over alleged cartel

New Zealand's competition watchdog said today it was taking court action against 13 international airlines for allegedly forming a cartel in the air cargo market.      

New Zealand Commerce Commission chairwoman Paula Rebstock said the airlines -- including British Airways, Cathay Pacific, United Airlines, Japan Airlines, Qantas and Air New Zealand -- caused extensive harm to New Zealand's economy by secretly agreeing to raise prices.      

The commission said the airlines colluded to raise air freight prices by imposing fuel surcharges for more than seven years, affecting the price of cargo both into and out of New Zealand.      

"It will have resulted in increased costs for exporters and importers and higher overall prices for many consumer goods," Rebstock said in a statement.      

The commission said it would also take action against seven airline staff, "including senior executives."      

Its statement said that "some airlines are co-operating with the commission and an early resolution may be possible in some cases."      

Air New Zealand and Cathay issued quick denials of wrong-doing.      

Airlines are estimated to earn more than $218 mn each year through air cargo operations in and out of New Zealand.      

While the surcharge agreement was in place between 2000 and 2006, total revenue for the airlines was around $2.9 bn , the commission said.