EC’s Antitrust division fines eleven airlines €799m

The European Commission has fined eleven air cargo carriers a total of €799.445 million for operating a worldwide cartel during a six-year period (December 1999 – February 2006), which affected cargo services within the European Economic area (EEA).

The carriers contacted each other to ensure that worldwide airfreight carriers imposed a flat rate surcharge per kg for all shipments. The cartel members extended their cooperation by introducing a security surcharge and refusing to pay a commission on surcharges to their clients (freight forwarders).

The aim of these contacts was to ensure that all the carriers involved introduced these surcharges, and that increases (or decreases) of the surcharge levels were applied in full without exception.  By refusing to pay a commission, the airlines ensured that surcharges did not become subject to competition through the granting of discounts to customers. Such practices are in breach of the EU competition rules.

In setting the level of the fines, the Commission took into account the sales of the companies involved in the market concerned, the very serious nature of the infringement, the EEA-wide scope of the cartel and its duration.

The errant airlines and their fines, including reductions under the Leniency Notice, are:

  • Air Canada – €21.04 million,
  • Air France-KLM: Air France – €182.92 million, KLM – €127.16 million
  • British Airways – €104.04 million
  • Cargolux – €79.9 million
  • Cathay Pacific – €57.12 million
  • Japan Airlines – €35.7 million
  • LAN Chile – €8.22 million
  • Martinair – €29.5 million
  • Qantas – €8.88 million
  • SAS – €70.167 million
  • Singapore Airlines – €74.8 million

Lufthansa (and its subsidiary Swiss) received full immunity under the Commission Leniency Program, as it brought the cartel to the Commission’s attention and provided valuable information.

All carriers were granted a 50% reduction on sales between the EEA and third countries in order to take into account the fact that on these routes part of the harm of the cartel fell outside the EEA.

The Commission increased the fine for SAS by 50% for its previous involvement in a cartel in the airline sector (SAS/Maersk cartel).

All carriers received a reduction of 15% on account of the general regulatory environment in the sector, which can be seen as encouraging price coordination.

Four carriers were also granted a 10% reduction for limited participation in the infringement.

As the fines on two companies would have exceeded the legal maximum of 10% of their 2009 turnover, the amount (before possible leniency considerations) was reduced to this level.

The fines of the following carriers were also reduced for their cooperation with the Commission under its Leniency Program:

  • Martinair – 50%
  • Japan Airlines – 25%
  • Air France-KLM, Cathay Pacific, LAN Chile and Qantas – 20%
  • Air Canada, Cargolux and SAS – 15%
  • British Airways – 10%.

Five carriers applied for a reduction claiming inability to pay the fine. However, none of the applications met the conditions for a reduction.

The Commission dropped allegations of collusion on two other surcharges from the case due to insufficient evidence, and also dropped charges against another eleven carriers and one consultancy firm.

This is part of a worldwide investigation into air cargo cartel activities, with airlines pleading guilty and paying fines in the US, Canada, Australia, New Zealand and South Korea, and ongoing investigations in those countries and others, including South Africa.

Quelle: eyefortransport
Portal:  www.logistik-express.com

 

 

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