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Air NZ And Commission Agree On Advertising Charge

Media Release 9 June 2006

Air New Zealand And Commerce Commission Agree On Advertising Charges

Air New Zealand has reached an agreement with the Commerce Commission in respect of prosecutions related to advertising in 2001 to 2003. The Auckland District Court today heard joint submissions including agreement to fines totalling $600,000 related to 112 advertisements. The Commerce Commission proposes to withdraw prosecutions in respect of 239 other advertisements. Air New Zealand has also agreed to pay $50,000 towards the Commerce Commission's costs.

If the joint submissions are accepted by the Court on 16 June, it will conclude proceedings heard last year in which the Court found that 14 out of 20 sample advertisements were misleading because headline fares did not include Civil Aviation Authority and insurance charges and in one case, a fuel surcharge.

Air New Zealand's Group General Manager Shorthaul Airlines, Norm Thompson, said "Air New Zealand's advertising has changed materially since 2003 and now provides greater clarity of what had become a complex calculation of variable input costs to different fares. The company will continue to work with the Commerce Commission to agree on further opportunities for simplification."

ENDS


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