Australia’s biggest airline Delta has cancelled flights to and from New Zealand after a New Zealand court ruled it has to pay a $1 million civil penalty for cancelling its flights.
The airline has been fighting to avoid paying the $1m in damages, which it says was caused by “unauthorised and unauthorised conduct”.
Delta confirmed the decision in a statement.
“We have cancelled the affected flights and will commence our legal proceedings with the NZ Civil and Administrative Tribunal,” the statement said.
Delta, which owns the Wellington-based carrier Air New Zealand, said the decision would be reviewed in the court system.
It said the airline had not been able to get permission to fly from Auckland to the country from Wellington.
The airline said it would be refunding passengers who had booked their flights and refunding the passengers who booked from Auckland.
“This is not an action taken lightly,” it said.
“Delta is committed to protecting the privacy of our customers and will take action against any individual who is found to be breaching this policy.”
Delta will continue to cooperate with the civil authorities to resolve this matter as quickly as possible.
“A spokesperson for the Civil and Administration Tribunal confirmed it had decided against the airline, and was looking into the matter.
It said it was looking at the airline’s “actions and procedures” in relation to its decision to cancel the flights.
Auckland mayor, Judith Collins, said it had been a very difficult decision for her to make.
She said the ruling could be used by the airline to take action in the future.
Ms Collins said she was “disappointed” the airline did not want to pay the money.
There were also reports of Delta refusing to pay.
ABC News has contacted Delta for comment.
In a statement to the ABC, the company said: “Delta has been fully complying with New Zealand laws and regulations, including the law against gambling.
“The airline will be reviewing the decision and will appeal to the Civil Court.
We have been in contact with New York Attorney General Schneiderman and will continue working with him and other authorities in New Zealand to ensure that we are compliant with the law.”