Deutsche Bahn to sue air cargo cartel for US$3 billion - Lufthansa key target

GERMAN state-owned railway Deutsche Bahn is planning a lawsuit against the air cargo price-fixing cartel that operated between 1999-2006, the Wirtschafts Woche (economy week) reported.

The Dusseldorf business weekly said Deutsche Bahn would submit the suit to the regional court in Cologne, seeking US$3 billion in damages from 11 airlines including Lufthansa and British Airways.



Deutsche Bahn declined to comment on the report beyond pointing to an invitation to a media briefing "on a multi-billion dollar lawsuit seeking damages from air cargo carriers".



Deutsche Bahn already announced in August it was suing in the United States for the same price fixing, noted Reuters.



The airlines' cartel was first exposed seven years ago and triggered fines in the European Union and in the United States. Victims of the cartel can sue separately for compensation.



Deutsche Bahn implicated BA, Lufthansa, Japan Airlines, Air France-KLM, Scandinavia's SAS, Qantas Airways, Cargolux Airlines International, Martinair Holland and All Nippon Airways in announcing its webinar press conference.



The report said Deutsche Bahn would be seeking the biggest portion of damages, up to EUR1.76 billion (US$2.2 billion) from Lufthansa, which had escaped fines so far because it reported the practice to the authorities.



Lufthansa said in its annual report that it is at risk of civil claims for damages in relation to the case, but noted that the European Commission's decision on the cartel is not yet definitive. It also said an expert report it commissioned concluded the cartel did not inflict any damage on customers.



Deutsche Bahn transports 390.1 million tonnes of freight a year, via land, rail, sea and air. It made EU39.1 billion in revenues last year and operates in more than 130 countries.