KEY POINTS:
Air New Zealand says it is surprised at being named in a A$200 million ($229 million) class action announced in Australia yesterday based on accusations of price-fixing in the air cargo market.
Law firm Maurice Blackburn Cashman filed the action in the Federal Court against Air New Zealand, Qantas, Lufthansa, Singapore Airlines, Cathay Pacific, JAL and British Airways.
It alleges the airlines formed a cartel to fix fuel, security and war-risk surcharges against Australian freight users, who were fleeced an estimated A$200 million over seven years.
Principal Kim Parker said a win could pave the way for a lawsuit on behalf of passengers, who were also subject to fuel surcharges.
"It's quite possible we will do that but we're presently focused on the issues in this class action," she said.
However, Air New Zealand has come out fighting, saying the action appeared to be "yet another attempt" by an opportunistic law firm to target large, high profile corporates.
"This action has all the hallmarks of similar class actions that Air New Zealand has been subject to in the past, including in the USA," said Air NZ general counsel John Blair.
The company had now received the papers and would examine the issues, he said.
"In responding to requests for information from various regulators, we have yet to see anything which causes us to conclude that Air New Zealand has breached applicable competition laws."
Ms Parker said the Australian Competition and Consumer Commission (ACCC) was investigating the alleged cartel, which could result in a "two-pronged attack" against the airlines.
The consumer watchdog has refused to comment.
The Australian class action follows similar lawsuits in the US and Canada.
Ms Parker said losses in the Australian international freight market were estimated at A$200,000.
That figure hinged on an assessment of the surcharges levied against what lawyers would argue should have been charged in a competitive market.
It is possible the surcharges should not have been charged at all.
The airlines claim rising oil prices, post September 11 security measures and increased insurance costs led to the surcharges.
Ms Parker said if the case was successful, all Australian businesses would benefit from future reductions in air freight costs.
The case is not expected to go to trial for up to three years.
- NZPA
