Air New Zealand Settles Price Fixing Lawsuit
Joe Cortez May 11, 2016
Flag carrier agrees to pay $35 million in fines, bringing total settlement to $1.19 billion.
Air New Zealand will settle their case in a class action lawsuit against 27 international air carriers, paying a fine for their part among the allegations. Air Transport World reports the carrier settled with the U.S. Department of Justice (DOJ) for $35 million.
The New Zealand flag carrier was one of many carriers accused of price fixing cargo operations between 2000 and 2006. The lawsuit is similar to a 2010 lawsuit brought by the European Union, accusing 11 airlines of price fixation on cargo shipments. Each carrier was accused by the DOJ of conspiring together to maintain prices on fuel and security surcharges. Air New Zealand was investigated in the incident but was ultimately released in 2011.
With the settlement, the carrier becomes 26th airline to make a deal with the DOJ. The payment proposed represents just under three percent of the $1.19 billion collected through lawsuit settlements. Air New Zealand asserted their settlement is not an admission of guilt. Instead, the carriers claim their settlement avoids an unnecessary risk in going to trial.
“There was no credible evidence that any Air New Zealand employee participated in any conspiracy,” John Blair, general counsel for Air New Zealand, told Sky News. “The potential for an unexpected verdict was not an acceptable commercial risk for the airline.”
The settlement is yet to be approved by a judge. The only airline remaining in the lawsuit is Air India, which has not yet moved to settle their part.
[Photo: Air New Zealand]
