Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolios

Air France-KLM, 10 other airlines hit with 776 million euro EU fine

Published 17/03/2017, 13:22
© Reuters. Chairman and CEO of Air France-KLM and Chairman of Air France Janaillac attends the group's 2016 annual results news conference in Paris
LHAG
-
AIRF
-
BMWG
-
0293
-
SIAL
-
ICAG
-
SASs
-
AC
-
9201
-

By Foo Yun Chee

BRUSSELS (Reuters) - Air France-KLM (PA:AIRF), British Airways (L:ICAG) and nine other airlines were hit with a 776 million euro (674.33 million pounds) fine by EU antitrust regulators on Friday for taking part in an air cargo cartel more than a decade ago.

The European Commission re-imposed the penalties after Europe's second highest court in 2015 annulled the EU executive's 2010 decision due to a procedural error.

The fines were unchanged for all the airlines except for the amount due from Martinair - cut to 15.4 million euros from the 29.5 million euro amount set in 2010.

Air France were fined 182.9 million euros, the highest, followed by KLM at 127.1 million, British Airways at 104.4 million, Cargolux at 79.9 million and Singapore Airlines (SI:SIAL) at 74.8 million.

Other carriers penalised were Air Canada (TO:AC), Cathay Pacific Airways (HK:0293), Japan Airlines (T:9201), LAN Chile and SAS (ST:SAS). Lufthansa (DE:LHAG), along with subsidiary Swiss International Airlines, escaped a fine as it alerted the cartel to the EU competition authority.

The Commission said it had fixed the procedural error cited by the court.

"Working together in a cartel rather than competing to offer better services to customers does not fly with the Commission," European Competition Commissioner Margrethe Vestager said in a statement.

SAS said it would appeal against the new decision.

The Commission in its 2010 finding said the cartel fixed air freight services, fuel and security surcharges between December 1999 and February 2006.

The decision led to a series of damages claims against the airlines from companies such as Germany's Deutsche Bahn, carmaker BMW (DE:BMWG) and car supplier Bosch.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

($1 = 0.9288 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.