Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Singapore Airlines Cargo settle air cargo cartel case

Singapore Airlines Cargo becomes seventh airline to settle air cargo cartel case


The High Court has ordered Singapore Airlines Cargo PTE (SIA Cargo) to pay a $4.1 million penalty for price fixing in breach of the Commerce Act. The company is the seventh airline to settle with the Commerce Commission in the long-running air cargo cartel case.

Today's penalty judgment brings the total penalties ordered in the case to $25.475 million. The Commission previously reached settlements with British Airways PLC, Cargolux Airlines International S.A, Emirates, Korean Air Lines Co., Limited, Qantas Airways Limited and Japan Airlines International Co., Limited.

SIA Cargo admitted liability for agreeing fuel and security surcharges in Indonesia and Malaysia for cargo flown to New Zealand over a period of nearly four years from October 2001 (security surcharges) and from mid-2002 (fuel surcharges). The penalty was recommended to the court by both the Commerce Commission and SIA Cargo as part of a pre-trial settlement and included a 20% discount to recognise SIA Cargo’s admissions. SIA Cargo was also ordered to pay costs to the Commission.

The Commission agreed to discontinue its proceedings against Singapore Airlines Limited, the parent company of SIA Cargo. SIA Cargo took over Singapore Airlines’ cargo operations in mid-2001.

"The Commission is pleased to have settled with another airline in this significant case. Price fixing is unlawful and the fines imposed in the air cargo case should be a deterrent to others who might breach the Commerce Act. The fines are also a reminder to companies that it is important to have effective compliance programmes in place to prevent anti-competitive behaviour," said Commerce Commission Chair Dr Mark Berry.

SIA Cargo and Singapore Airlines were among the 13 airlines the Commission filed proceedings against in December 2008, alleging that the airlines colluded to impose fuel and security surcharges for air cargo shipments to and from New Zealand.

Background
Section 30 of the Commerce Act makes price-fixing agreements between competitors unlawful. This includes agreements with the purpose, effect or likely effect of fixing, controlling or maintaining prices, or that provide a mechanism for doing so. An agreement can be a formal document, such as a contract. An agreement can also be very informal.

A company that contravenes section 30 may be ordered to pay penalties under section 80 of the Commerce Act. The penalty must not exceed the greater of:
• $10 million
• or, if it can be readily ascertained and if the Court is satisfied that the contravention occurred in the course of producing commercial gain, three times the value of any commercial gain resulting from the contravention
• or, if the commercial gain cannot be readily ascertained, 10% of the turnover of the body corporate and all of its interconnected bodies corporate (if any).


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news