On 10 May 2016, the
Australian reported that Air New Zealand has settled a cargo cartel case
from 2006 in the US for $47.4m AUD.
Put simply, Air New Zealand was alleged to have participated
in price fixing, a form of cartel conduct, along with 28 other airlines,
including Qantas, who allegedly formed part of the cartel in relation to air
cargo fuel and security surcharges between 2000 and 2006.
Under Australian law, a contract, arrangement or
understanding is prohibited if it contains a ‘cartel provision’ i.e. it
contains a provision relating to:
- price-fixing
- restricting outputs in the production and supply chain
- allocating customers, suppliers, or territories, or
- bid rigging,
In
associated proceedings in Australia, the Full Court of the Federal Court (ACCC
v PT Garuda Indonesia [2016] FCAFC 42) has
recently found that price fixing engaged in by Garuda and Air New Zealand
in relation to the imposition of agreed surcharges on the carriage of air cargo
from ports outside Australia, into Australia, breached Australian anti-cartel
laws. The total fines in relation to this cartel, not counting Air New Zealand
and Garuda, amount to $98.5m AUD.
Erika-Jane Wilson
Lawyer
+61 7 3233 8547
ewilson@mccullough.com.au
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