Airlines fined for collusion on cargo fuel surcharges

British Airways was ordered to pay $1.6 million by the High Court at Auckland yesterday for its part in a price-fixing cartel.

The Commerce Commission first filed proceedings against 13 international airlines in December 2008, alleging that they colluded to raise the price of freighting cargo by imposing fuel surcharges on cargo shipments into and out of New Zealand.

Cargolux International Airlines was also ordered to pay $6 million in penalties and $25,000 costs, and British Airways was ordered to pay $100,000 costs on top of the $1.6 million.

The commission has now reached a settlement with the two airlines, as well as Qantas, after the airlines admitted to entering into and participating in price-fixing arrangements.

Cargolux and BA admitted fixing fuel surcharges, and Cargolux has also admitted imposing security surcharges for freighted cargo. The court has not yet imposed a penalty on Qantas.

Justice Judith Potter said the arrangements were "at the serious end of the spectrum".

- Kelly Gregor