Justice Geoff Venning has also ordered Air New Zealand to pay costs of $259,079 to the Commerce Commission and to make a contribution of $300,000 towards the market watchdog's investigation costs.
The High Court has accepted $7.5 million is the appropriate penalty for Air New Zealand to pay for its role in the multi-airline cargo price-fixing scandal.
Justice Geoff Venning has just released his decision, accepting the amount the national carrier and the Commerce Commision had agreed on at a penalty hearing last week.
Justice Venning ordered Air New Zealand to pay costs of $259,079 to the commission and to make a contribution of $300,000 towards the commission’s investigation costs.
The cartel penalty is the largest handed out against a single company under the Commerce Act.
Air New Zealand was the last of 11 airlines to the settlement table in the cartel case, brought by the Commerce Commission in 2008, which has now seen it receive $42.5 million in penalties so far.
Justice Venning had to consider whether the penalty recommended to the court was in the appropriate range.
He agreed a reduction of 20% from the starting point of between $9 million and $9.75 million was appropriate.
Discounts were given for resolution prior to trial, admission of liability, cooperation with the commission’s investigation and providing acess to documents held overseas.
The court also acknowledged that Air New Zealand had a clean record and its conduct was not as culpable as some of the other airlines pursued by the commission.
Air New Zealand has also agreed not to pursue its Court of Appeal application in respect of the "market" definition reached by the High Court.
The final penalty of $7.5 million amount reflects Air New Zealand’s much larger share of the air cargo market than that of other airlines that have agreed penalties.
The settlement, factored into Air New Zealand's April earnings guidance, avoids further protracted and costly litigation, Air New Zealand said in a statement.
The airline has already spent $10 million defending the litigation
Shares in Air New Zealand, three-quarter owned by the government, closed tonight at $1.48
The Commerce Commission has received penalties from British Airways, Cargolux Airlines, Emirates, Japan Airlines, Korean Air Lines, Qantas Airways, Singapore Airlines Cargo, Cathay Pacific, Thai Airways International and MASkargo System Berhard, which replaced Malaysian Airlines.
