Wellington, Aug 24 NZPA - Air New Zealand has reassured staff that it has not been involved in anti-competitive conduct in the air cargo market.

Chief executive Rob Fyfe sent a message to staff today after a media report that the airline was caught up in a case brought by Australian regulators against Middle Eastern airline Emirates in the global air freight scandal.

Letters, e-mails and telephone conversations between Air New Zealand managers and their counterparts at Emirates will be used as evidence, The Sydney Morning Herald reported today.

The Australian Competition and Consumer Commission (ACCC) has filed proceedings against Emirates charging them with attempting to fix cargo prices, including attempting to make an illegal agreement with Air New Zealand. In those proceedings they refer to correspondence with Air NZ deputy chief executive Norm Thompson.

The ACCC has not currently filed proceedings alleging any wrongdoing by Air New Zealand or Mr Thompson, Mr Fyfe said.

"Our own thorough review of the documents shows that Air New Zealand acted appropriately in all our discussions and communications," Mr Fyfe said.

He said in September 2003, Air NZ was beginning the introduction of A320 aircraft onto the trans-Tasman route, which created a shortage of cargo capacity because they replaced wide-body aircraft.

At about the same time, Emirates had just entered the Tasman market bringing massive over-capacity of passenger and cargo services, making them a logical source of extra wide-body capacity.

"This was the context of Norm's discussions with Emirates which after some negotiation, resulted in a cargo Special Prorate Agreement (SPA); a very standard and entirely legal agreement in the airline industry."

The agreement recorded wholesale rates airlines charge to each other. It did not reflect any agreement on prices to be charged to cargo customers.

"Air New Zealand has never condoned anti-competitive conduct and has co-operated with authorities throughout their investigations.

I share the same view that cartels are insidious and anti-competitive and that price fixing activities should be prosecuted by the appropriate authorities," Mr Fyfe said.