The NZ$58 million (£18m) export industry is set to lose NZ$7m (£2.1m) in the next 12 months.

Airlines want to change the way low-density cargo weight is calculated, claiming they are giving away space that could be used for more lucrative heavy exports. But flower exporters say airlines rely on the lighter cargo to top up revenue.

Air New Zealand has asked the ministry of transport to approve the charges to avoid a commerce commission challenge.

New Zealand's largest flower exporter, Eastern & Global, has questioned whether the government, as an 82 per cent shareholder in Air NZ, can make regulations that will create a financial return for airlines.

Eastern & Global manager Greg Keymer said: 'Surely it's collusion, all airlines fixing the same price with government approval and no commerce commission scrutiny.' Flower growers spokeswoman Kathie Henderson said growers and exporters could not pass the increase on to customers.

She said exports made up more than half of the NZ$100m yearly returns for the country's 1,800 growers and the extra costs would cause smaller companies to fold.

Topics