EU fines 11 carriers US$1.1 billion for cartel activities

ELEVEN airlines were stung with EUR800 million (US$1.1 billion) by the European Commission for participating in a global air cargo cartel, with Air France-KLM and Singapore Airlines vowing to appeal.

Air New Zealand announced that the EU price fixing charges had been dropped by the European Commission, Reuters reported. "This brings closure to one more part of the ongoing investigations and proceedings, which commenced in February 2006," an Air New Zealand spokesman said.

But EU regulators concluded that the airlines - Air Canada, LAN Chile, Cathay Pacific Airways, Singapore Airlines and Qantas among them - co-ordinated surcharges for fuel over a six-year period from 1999 to 2006 within the European Economic Area.

Air France-KLM fined the most, EUR310 million, of which EUR183 million (US$0.3 billion) was charged to Air France and EUR127 million to KLM. Martinair, owned by Air France, was fined EUR29.5 million.

British Airways was ordered to pay EUR104 million, Scandinavia's SAS was fined EUR70.2 million and Cargolux will have to pay EUR79.9 million.

In Asia, Singapore Airlines was fined EUR74.8 million, Cathay was hit with a EUR57.1 million (US$7.8 million) fine while Japan Airlines will have to pay EUR35.7 million.

Air Canada is to pay EUR21 million while Qantas has to pay EUR8.9 million and LAN Chile, EUR8.2 million.

Lufthansa and its subsidiary Swiss International Air Lines escaped a fine under the commission's "leniency programme", under which informers are rewarded.
(Source:www.schednet.com)