Air France-KLM, British Airways and nine other airlines were fined a total of EUR?799 million (USD$1.11 billion) by EU regulators on Tuesday in a price-fixing case that could open the way for private claims against the companies.The European Commission said in a statement the carriers coordinated surcharges for fuel and security without discounts between late 1999 and early 2006."It is deplorable that so many major airlines coordinated their pricing to the detriment of European businesses and European consumers," Competition Commissioner Joaquin Almunia said.The European Commission slapped a EUR?340 million fine, the biggest in the case, on the Franco-Dutch group Air France-KLM, which acquired Martinair in 2008.Air France-KLM said in reaction that the penalty was disproportionate and it would appeal to the court.It already faces a claim for up to EUR?500 million from a group of companies that includes Ericsson and Philips, seeking compensation for alleged air cargo price-fixing.HUNDREDS OF PRIVATE CLAIMANTSLitigation firm Claims Funding International (CFI) which filed the lawsuit on behalf of the companies, said the number of claimants could increase."We have hundreds of companies waiting for the Commission decision before they sign up," said Peter Koutsoukis, CFI managing director. A Dutch court is due to hear the case on March 30.The EU regulator fined British Airways EUR?104 million, Singapore Airlines EUR?74.8 million, Cathay Pacific EUR?57.12 million, Qantas EUR?8.9 million and Japan Airlines EUR?35.7 million.Luxembourg-based Cargolux Airlines was fined EUR?79.9 million and LAN Chile EUR?8.2 million.Air Canada, which was fined EUR?21 million, said it may appeal the decision. It also said it had made a CAD$125 million provision related to the case in 2008.SAS, which was fined EUR?70.2 million, said it would appeal, but would provide for the charge in its third-quarter earnings to be announced on Wednesday.Lufthansa was found guilty of taking part in the cartel but received immunity from punishment because it had alerted the Commission to the existence of the price-fixing scheme. Swiss International Air Lines, acquired by Lufthansa in 2005, also escaped a fine.(Reuters)
9 November 2010
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