Australian Competition and Consumer Commission v Air New Zealand Limited (No 15)

The Australian Competition and Consumer Commission (ACCC) brought proceedings against Air New Zealand Limited for alleged contraventions of section 45 of the Trade Practices Act 1974 (Cth). The ACCC alleged that Air New Zealand had made, or arrived at, and given effect to, various understandings concerning the level of fuel, insurance, and other surcharges to be imposed on the supply of international air freight services. The proceeding arose as part of the long-running litigation brought by the ACCC against 15 international airlines, including Air New Zealand, for similar conduct. The Court was required to determine whether Air New Zealand contravened section 45 of the Trade Practices Act 1974 (Cth) and, if so, to consider the appropriate declarations and pecuniary penalties to be imposed. The Court concluded that the respondent had contravened the Act, and found that the proposed declarations and penalties were appropriate. The Court noted the agreement between the parties regarding the costs of the proceedings.

The Court found that the question of whether Air New Zealand had contravened section 45 of the Act on each relevant occasion was a real and not hypothetical one. The ACCC, as a public regulator under the Act, had a genuine interest in seeking the declaratory relief, and Air New Zealand, as the respondent, had a genuine interest in opposing the making of those declarations. The Court concluded that the orders which it made were within the Court's power and appropriate in the circumstances. The Court made the declarations sought by the ACCC, and imposed pecuniary penalties on Air New Zealand for its contraventions of the Trade Practices Act 1974 (Cth). The Court also noted the agreement between the parties regarding the costs of the proceedings.