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JANUARY 2018

Week 3

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Air New Zealand, China Airlines and Philippine Airlines settle class action

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January 19th 2018

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Air New Zealand (Air NZ), Taiwan’s China Airlines (CAL) and Philippine Airlines (PAL) have agreed to pay US$29.4 million to settle a proposed price-fixing class action, dating from 2007, which accused the carriers of airfare pricing fixing between the U.S. and Australasia. Read More »

The three airlines join a number of alleged co-conspirators that already had settled with regulators, with fines of $39.5 million, in 2015. They were Air France, Cathay Pacific Airways, Japan Airlines (JAL), Malaysia Airlines, Qantas Airways, Singapore Airlines, Thai Airways International (THAI) and Vietnam Airlines.

According to the filings, the defendants engaged in a “long-running, international conspiracy” to impose “air fare increases, including fuel surcharge increases, on international air passengers that were in substantial lockstep both in their timing and amount”.

Specifically, CAL has agreed to pay US$19.5 million plus US$250,000 for notice costs; PAL will pay US$9 million; and Air NZ US$400,000 plus US$250,000 for notice costs. All Nippon Airways (ANA) and EVA Airways are the only airlines still challenging the rulings.

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