Japan Airline fined for price fixing

Japan Airlines has been ordered to pay $2.275 million in penalties after admitting to air cargo price fixing.

The penalties ordered by the High Court this morning related to fuel and security surcharges on cargo flown to New Zealand. Court costs will also be paid by the airline.

The penalty was recommended by the Commerce Commission and the airline as part of a pre-trial settlement. It was discounted by 35 per cent because of Japan Airlines' admission and its cooperation with the commission's long-running investigation.

The commission's general counsel, Mary-Anne Borrowdale, said they were pleased with the outcome.

''Wherever possible, if a party is prepared to admit liability we will seek to resolve issues through settlement,'' she said.

The commission filed proceedings against 13 airlines at the end of 2008, alleging they had worked together to put surcharges on air cargo shipments in and out of New Zealand over a six-year period. Japan Airlines is the fourth carrier to settle.

Eight more airlines, including Air New Zealand, are still defending charges. The case is scheduled to continue in the High Court in March.

The Japan Airlines fine will bring the amount the Commerce Commission has received in settlements to more than $16m.

- © Fairfax NZ News