Cargolux falls foul of Canada’s Competition Bureau

Cargolux Airlines International has pleaded guilty in a Canadian Federal Court and was fined $2.5 million for its role in an air cargo cartel affecting Canada.

Cargolux admitted that it engaged in a conspiracy to fix air cargo fuel surcharges for international air cargo transportation services from Canada between April 2002 and February 2006.

Cargolux’s penalty brings the total fines in the Bureau’s air cargo investigation to more than $17 million.

In 2009, Air France, KLM, Martinair, Qantas and British Airways each pleaded guilty to fixing air cargo surcharges for shipments on certain routes from Canada.

The Bureau’s investigation into the alleged conduct of other air cargo carriers continues.

Under the Competition Act, an agreement between competitors to fix prices, allocate markets or restrict output in Canada is a criminal offence.

At the time of the price-fixing conduct in question, penalties were capped at fines of up to $10 million and prison terms of up to five years, or a combination of both.

Following amendments to the Act that came into force in March 2010, penalties for violations of the conspiracy provision include fines of up to $25 million and prison terms of up to fourteen years, or a combination of both.

Quelle: eyefortransport
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