Air NZ advertising case appealed

Embarrassing allegations that Air New Zealand misled the public in its fares advertisements are to get another public airing.

The Commerce Commission said yesterday that it was appealing the rejection of six charges that centred on the airline's exclusion of some tariffs such as fuel levies from headline fares.

The charges were brought with 14 others upheld by the district court last year. Together, they were designed to resolve 342 Fair Trading Act charges against the airline.

Commission chairwoman Paula Rebstock declined to disclose the basis of the appeal, saying only that the case had wide-reaching implications for advertising in New Zealand.

"The commission believes its appeal will result in a clearer line being drawn for advertisers," Rebstock said.

In his judgment last November, District Court judge Stan Thorburn justified his acquittal of the airline on the six charges subject to appeal for a variety of reasons, including the proximity of headline fares in the advert to the extra tariffs.

Air New Zealand said it was disappointed by the commission's decision and it would defend the appeal.

"We understood clearly and accepted the court's decision and we have already changed our advertising in response," said its general counsel, John Blair.

"We have also announced further changes to achieve all inclusive fares as soon as they can be implemented."

Blair said it was clear from the commission's statement that the prosecution was a test case with other industry participants having charges pending.

Air New Zealand faces a fine of up to $100,000 for each breach occurring before July 2003 and a further $200,000 for breaches after, when the maximum fines were raised.

Most of the breaches occurred before July 2003.

Sentencing on the charges upheld in November was expected early this year, but that may be delayed pending the appeal.