NY court approves settlement with eight price-fixing air cargo carriers

EIGHT airlines, including British Airways and Chile's LAN Cargo, have obtained final court approval for a settlement in a six-year-long class action lawsuit by shippers over the carriers' involvement in a cartel that fixed fuel surcharges for air cargo.

Under the agreement approved by a New York court, British Airways will pay US$89.5 million and LAN $66 million. Air Canada, El Al, Emirates, Saudi Arabian Airlines, South African Airways and Malaysia Airlines will pay a combined $27.5 million.

This is the third settlement in the lawsuit and brings total payments so far to $485 million.

The lawsuit followed criminal investigations in the US, the European Union, Canada, South Korea, Australia and New Zealand into an alleged global price-fixing cartel in 2000-2006 involving more than 24 airlines.

The EU fined 11 airlines, including BA, Air France-KLM and Cargolux, $1.1 billion in 2010 for their role in the cartel. The US so far has fined more than 20 airlines more than $1.7 billion.