News Content
EU to reignite suit against airlines said to be colluding to fix surcharge prices
THE European Commission seeks to reimpose EUR776 million (US$835.6 million) in fines against a dozen air freight carriers embroiled in a cartel accused of price-fixing surcharges, after a court overturned the antitrust regulator's earlier decision issued in 2010.
The initial fines were annulled in December 2015 by the European Union's second-highest court over procedural errors by the regulator. The court said the EC's decision was contradictory because it accused the carriers of operating a single cartel, but had highlighted actual legal infringements by only some carriers on some routes.
All the airlines except Qantas Airways challenged the EU's decision before the general court, reported the Wall Street Journal.
The airlines accused of colluding to fix fuel and security surcharges between December 1999 and February 2006 were: Air Canada, Air France-KLM, Martinair, British Airways, Cargolux Airlines International, Cathay Pacific Airways, Japan Airlines, LAN Airlines, Scandinavian Airlines, Qantas, and Singapore Airlines.
"The commission maintains that these air cargo carriers participated in a price-fixing cartel and is adopting a new decision and re-establishing the fines," the regulator said in a statement. "The commission will not let cartels go unpunished."
European Commission spokesman Ricardo Cardoso added that because the general court did not rule on the substance of the case or an existence of a cartel, "we are fully able to readopt the decision while correcting the procedural mistake."
Air France-KLM and Cargolux said they were reviewing the Commission's decision and whether to appeal it. Air France noted its fine was slightly reduced compared with the initial decision, owing to a lower fine for Martinair due to technical reasons.
The commission also announced it was imposing the largest fine on Air France-KLM of EUR310 million, followed by EUR100 million for British Airways and EUR80 million for Cargolux.
The initial fines were annulled in December 2015 by the European Union's second-highest court over procedural errors by the regulator. The court said the EC's decision was contradictory because it accused the carriers of operating a single cartel, but had highlighted actual legal infringements by only some carriers on some routes.
All the airlines except Qantas Airways challenged the EU's decision before the general court, reported the Wall Street Journal.
The airlines accused of colluding to fix fuel and security surcharges between December 1999 and February 2006 were: Air Canada, Air France-KLM, Martinair, British Airways, Cargolux Airlines International, Cathay Pacific Airways, Japan Airlines, LAN Airlines, Scandinavian Airlines, Qantas, and Singapore Airlines.
"The commission maintains that these air cargo carriers participated in a price-fixing cartel and is adopting a new decision and re-establishing the fines," the regulator said in a statement. "The commission will not let cartels go unpunished."
European Commission spokesman Ricardo Cardoso added that because the general court did not rule on the substance of the case or an existence of a cartel, "we are fully able to readopt the decision while correcting the procedural mistake."
Air France-KLM and Cargolux said they were reviewing the Commission's decision and whether to appeal it. Air France noted its fine was slightly reduced compared with the initial decision, owing to a lower fine for Martinair due to technical reasons.
The commission also announced it was imposing the largest fine on Air France-KLM of EUR310 million, followed by EUR100 million for British Airways and EUR80 million for Cargolux.
Latest News
- For the first time, tianjin Port realized the whole process of dock operati...
- From January to August, piracy incidents in Asia increased by 38%!The situa...
- Quasi-conference TSA closes as role redundant in mega merger world
- Singapore says TPP, born again as CPTPP, is now headed for adoption
- Antwerp posts 5th record year with boxes up 4.3pc to 10 million TEU
- Savannah lifts record 4 million TEU in '17 as it deepens port
