KEY POINTS:
Air New Zealand has been given two months by Europe's anti-trust regulator to explain its alleged role in a global air cargo price-fixing scam involving major airlines.
It is one of 25 airlines that have been contacted by the European Union following an investigation into alleged agreements among
airlines over air cargo rates and surcharges.
The carrier said it had received a statement of objections, which sets out issues the airlines were required to respond to by March 3.
"Air New Zealand will not be making any further comment until the statement has been considered by the company's lawyers," it said in a statement.
Australia's national airline, Qantas was fined A$70 million ($80 million) over similar issues in the United States last month.
The latest European inquiry is focused on claims of criminal behaviour by the freight arms of airlines. Some including Singapore Airlines, Cathay Pacific and Air Canada which, like Qantas, were sent "please explain" notes on December 20.
Qantas yesterday joined other airlines in confirming it had also received the demand, which European Commission spokesman Jonathan Todd called "official charge sheets".
British Airways, Japan Airlines, Air France-KLM, SAS Group (owner of Scandinavian Airlines) and Cargolux Airlines International, are also reported to be under scrutiny.
Each carrier risks fines of up to 10 per cent of their annual cargo revenue if found guilty.
Last year Qantas earned a total of A$902.5 million from its global freight business but any fine that was imposed by a European court would be apportioned against revenues generated from that region.
As well as the US fine and the likelihood of another prosecution in Europe, actions by Qantas are also being probed by the Australian Competition and Consumer Commission and the Commerce Commission in New Zealand.
The freight scam outlined in the US hearings allegedly operated from January 2000 until February 2006.
Qantas said it learned it was being investigated three months later, in May, 2006, after US and European regulators raided offices on both sides of the Atlantic.
While the scheme ran, it is alleged the airlines imposed surcharges attributed to fuel costs, security surcharges as a result of September 11 attacks, and war risk surcharges because of the Iraq war.
After signing the US plea deal Qantas chief executive Geoff Dixon said up to 30 airlines were caught up in the US probe.
After news of the Qantas plea bargain with US authorities, ACCC chief Graeme Samuel said some companies saw fines for price-fixing "merely as a cost of doing business".
British Airways and Korean Air Lines were also heavily fined by the US Department of Justice for similar activities, with each airline paying US$300 million ($395 million).
- NZPA
