News
Air NZ settles in long standing cargo class action and launches B787 on Honolulu route
May 13th 2016
Air New Zealand (Air NZ) has agreed to pay $35 million to settle a long standing price fixing class action claim although it never admitted the charges and had previously been cleared. Read More »
In 2006, a number of freight forwarders filed a U.S. anti-trust civil compensation claim against several airlines, including Air NZ. They alleged a conspiracy involving fuel and security surcharges imposed by the carriers on cargo carried between 2000 and 2006.
A settlement between Air NZ and the cargo firms was agreed through mediation on Saturday and is subject to approval by a New York court, the airline said in an announcement to the New Zealand Stock Exchange. If accepted, Air NZ will pay $35 million, which represents 2.8% of the $1.22 billion paid in settlements by all 28 defending carriers.
"There was no credible evidence that any Air NZ employee participated in any conspiracy, but the potential for an unexpected verdict was not an acceptable commercial risk for the airline," said Air NZ's lawyer, John Blair. The $35 million settlement is not included in the airline's 2016 profit forecast of more than NZ$800 million ($546 million).
In separate events, the Star Alliance member this week replaced the B767-300ER with the B787-9 on the four-weekly Auckland-Honolulu route, which increased its ASKs on the route by approximately 20%. "As Hawaii continues to be a popular holiday destination for Kiwi travellers, we're thrilled to be adding capacity and are confident more Australian customers will be looking to connect through Auckland," said Air NZ chief of sales and commercial officer, Cam Wallace.
Separately, the carrier will maintain suspension of all scheduled passenger flights to Vanuatu’s Bauerfield International Airport until the runway is permanently fixed. The airline’s four-month-long boycott of Vanuatu has provoked the wrath of Vanuatu’s minister for infrastructure who denied an Air NZ charter flight carrying RSE workers permission to use the airfield last month.
“The government has denied their application and instead encourages such charters to be operated by airlines committed to the destination,” he was quoted by the Fiji Sun newspaper.
Virgin Australia will resume its three times a week B737-800 service to Vanuatu this month and go to four-times weekly from June 19, evidently satisfied with the remedial works carried out at Bauerfield. It remains to be seen what the third airline involved in the controversy, Qantas Airways, will decide.
