Air NZ's $600,000 fine for misleading ads confirmed

Air New Zealand has been ordered by the Auckland District Court to pay $600,000 in fines in a court case over the real cost of its fares.

The fines and $65,000 in costs had already been agreed to by the airline and complainant the Commerce Commission.

Air NZ was found guilty on a total of 112 of 300 charges, the remainder of which were withdrawn.

The penalty is one of the highest ever imposed under the Fair Trading Act for misleading advertising.

Air NZ was taken to task over advertising, mostly between 2001 and 2003, which did not include certain surcharges such as for fuel.

The airline has since moved to using all inclusive prices in its ads.

Commerce Commission general manager Geoff Thorn said other airlines had been watching the case and made changes.

- NZPA