UPDATE: EU Fines 11 Airlines EUR799 Million For Air Cargo Cartel
10 11월 2010 - 3:18AM
Dow Jones News
The European Commission Tuesday fined 11 airlines a total of
EUR799 million for forming a global cartel to fix air-freight
tariffs, mainly fuel surcharges, ending an investigation that
dragged on for years with the fourth-largest fine in a cartel
case.
Air France KLM SA (AF.FR) received the biggest fine with EUR340
million, including the three different airlines that are now part
of the group --Air France, KLM and Netherlands-based Martinair.
British Airways PLC (BAY.LN) was fined EUR104 million.
Many countries around the world, from South Africa to New
Zealand, have been investigating issues related to price fixing in
air cargo. In the U.S., total fines of more than $1.5 billion were
levied against airlines that acknowledged fixing fuel surcharges,
and eighteen airlines have been charged.
According to the commission, the European Union's antitrust
body, the airlines colluded on some surcharges between December
1999 and February 2006, when the investigation --which initially
targeted more than 20 companies-- started with unannounced raids at
the companies' headquarters.
Initially, "the carriers contacted each other so as to ensure
that worldwide airfreight carriers imposed a flat rate surcharge
per kilo for all shipments," the commission said in a statement.
"The cartel members extended their cooperation by introducing a
security surcharge and refusing to pay a commission on surcharges
to their clients," it said.
Other airlines fined include Singapore Airlines Ltd. (C6L.SG),
fined EUR74.8 million, Qantas Airways Ltd. (QAN.AU) with EUR8.8
million, Cathay Pacific Airways Ltd. (0293.HK), with EUR57.1
million and Japan Airlines International Co., fined EUR35.7
million.
The EU also fined Scandinavian airline SAS AB (SAS.SK) EUR70.2
million, LAN Chile (LAN.SN) EUR8.2 million, Luxembourg-based
Cargolux EUR79.9 million and Air Canada (AC.B.T) EUR21 million.
Deutsche Lufthansa AG (LHA.XE) wasn't fined because it acted as
a whistle-blower in the case, the commission said.
The commission can fine the companies up to 10% of their annual
global revenue.
The EU didn't fine any U.S. company because it didn't find
enough evidence to do so, European Competition Commissioner Joaquin
Almunia said during a press conference to announce the
decision.
Some companies, including British Airways and Cargolux, have
been putting money aside because of the prospect of a fine.
British Airways said Tuesday that the fine falls within its
provision. The company said in May 2007 that it had provisioned
GBP350 million for fines in the U.S. and EU, while Air France-KLM
provisioned EUR530 million for fines in different regions.
SAS, which didn't make any provision, said Tuesday that it will
appeal the commission's decision, calling the fines
disproportionate, while Cargolux said the fines seems "a very harsh
punishment indeed," when added to others due to other antitrust
authorities.
-By Alessandro Torello, Dow Jones Newswires; +32 2 741 14 88;
alessandro.torello@dowjones.com (Frances Robinson and Daniel
Michaels in Brussels, Ian Edmonson in Stockholm and Jonathan Buck
in London contributed to this article.)