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Image header Agence Europe
Europe Daily Bulletin No. 10241
Contents Publication in full By article 12 / 37
GENERAL NEWS / (eu) eu/competition

Air freight cartel faces fines

Brussels, 21/10/2010 (Agence Europe) - Several large airline companies, including Air France, KLM, British Airways and SAS, could face European Commission fines for having organised an air cargo cartel. Communication of the decision stating the amount of the fines is expected on 9 November, Reuters indicates.

The Commission investigation, which covered over 20 companies, had been triggered in December 2007 following inspections carried out on both sides of the Atlantic by Commission services and those of the US Justice Department. The companies concerned were suspected of insider agreements on the subject of fuel surcharges in order to offset the surge in oil prices. Not all, however, are to be penalised.

Although the Commission had not communicated the names of the companies undergoing investigation, British Airways, Lufthansa, SAS, Air France-KLM, Japan Airlines, Cathay Pacific, All Nippon Airways, Air Canada and Alitalia have confirmed that they were concerned.

Lufthansa had acknowledged the facts, which could mean that it will not have to pay such heavy fines under the Commission's leniency programme which exonerates in whole or in part companies that denounce insider dealing or cooperate with the inquiry.

The fine could be substantial, although it will not reach the record €1.38 billion imposed in 2008 on the glassmakers' cartel operating in the automotive sector.

No date has been given by the Commission but the debate underway on the size of the fines could delay still further a decision that was due last week. (F.G./transl.jl)

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