Air NZ makes u-turn in cartel fight

Photo / NZ Herald

Air New Zealand has made an 11th hour bid to withdraw admissions it made to the Commerce Commission in the long-running air freight cartel case.

A penalty hearing this afternoon was adjourned for a week after the airline filed new proceedings in the case.

Justice Christopher Allan said the airline now believed some of the material it had based its settlement on had not been reliable.

The judge said it would be "most unusual" to have an agreement cancelled by the defendant.

Commerce Commission lawyer Brendan Brown said the settlement related to activity in Australia, Japan and Malaysia.

Ten other airlines have admitted their role in the price fixing case and have paid penalties of $35 million.

The action here stemmed from raids by regulators on airlines around the world in 2006 following allegations they colluded to increase freight charges and impose a security surcharge after the 2001 terror attacks in the United States.

Since then airlines have paid billions of dollars in fines and costs in other countries and some airline executives have been jailed.