New Zealand files charges against 3 airlines

The commission said the charges against Cathay Pacific Airways, Singapore Airlines subsidiary Singapore Airlines Cargo Pte. Ltd. and Aerolineas Argentinas allege noncompliance with notices seeking documents and information that were issued under New Zealand's Commerce Act in October 2007.

The commission is investigating allegations some airlines have colluded to reach agreements and understandings on the level of cargo rates, including fuel surcharges, on international flights to and from New Zealand, Chairwoman Paula Rebstock said in a statement.

If the airlines are found in breach of section 103 of the Commerce Act they can be fined up to $23,000. New Zealand's air cargo market is estimated at about $309 million a year.

The commission declined comment on the air cargo market investigation but said if it concluded there had been a breach of the Commerce Act, it would be file proceedings in the High Court later this year.

Rebstock defended the use of statutory notices against the three carriers.

"Any failure to comply with ... statutory notices that form part of a commission investigation is a serious enforcement issue," she said.

"Cartels are insidious and cause extensive damage to the New Zealand economy," she added. "They are difficult to detect and extremely difficult to investigate because of their secretive nature."

A number of airlines are already cooperating with the commission's investigation.

Singapore Airlines Cargo said it will vigorously defend the allegations made by New Zealand's Commerce Commission.