Air NZ settles US cartel case, pays out $52m

Air New Zealand has agreed to settle a cargo cartel case in the US for NZ$52m. The airline said it settled rather than take the risk of a potentially "very material commercial liability" by continuing to defend its position. "This is purely a question of mitigating an unacceptable risk created by the US class action system which creates enormous pressure to settle such matters commercially. 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 John Blair, Air New Zealand's general counsel. The case dates back to 2006, when a civil compensation claim was filed on behalf of several freight forwarders naming a significant number of global airlines, including Air NZ, for alleged conspiracy involving air cargo fuel and security surcharges between 2000 and 2006. In 2011, Air NZ having successfully defended its position with the US Department of Justice, was released from their criminal investigation. But after ten years of arguing the validity of the civil compensation lawsuit in US courts, Air New Zealand elected to pursue settlement with the plaintiffs. The settlement, reached through mediation efforts, was agreed last Friday. Despite settlement, Air NZ has not admitted to being part of the alleged conspiracy, the airline said in a statement to the NZX.<br/>