EU Fines 11 Airlines EUR799 Million In Total For Air Cargo Cartel

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.

Air France KLM SA (AF.FR) received the largest fine with EUR310 million, as well as the fine to Netherlands-based Martinair, which it now owns. British Airways PLC (BAY.LN) was fined EUR104 million.

Other airlines fined include Singapore Airlines Ltd. (C6L.SG), Qantas Airways Ltd. (QAN.AU), Cathay Pacific Airways Ltd. (0293.HK), Japan Airlines International Co., Scandinavian airline SAS AB (SAS.SK), LAN Chile (LAN.SN), Cargolux and Air Canada (AC.B.T).

Deutsche Lufthansa AG (LHA.XE) wasn't fined because it acted as a whistle-blower in the case, the commission said.

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.

-By Alessandro Torello, Dow Jones Newswires; [phone]; [e-mail]