Airlines fined for millions by competition commission

The Competition Commission (Comco), which prohibits a price cartel in the context of air freight, has fined several global airlines for a total of 11 million Swiss francs (around R121 million). A statement by Comco says an investigation revealed that the airlines had agreed on freight rates, fuel surcharges, war risk surcharges, customs clearance surcharges for the United States and the commissioning of surcharges. “All those elements are part of the price that is charged for air freight transport. This is a horizontal price agreement case,” reads the statement The following airlines were fined: Korean Air Lines Co. Ltd., Atlas Air Worldwide Holdings, Inc. (Polar Air Cargo Worldwide, Inc.), AMR Corporation (American Airlines), United Continental Holdings, Inc., SAS AB (Scandinavian Airlines), Japan Airlines Co., Ltd., Singapore Airlines Limited, Cathay Pacific Airways Limited, Cargolux Airlines International S. A., British Airways Plc. and Air France-KLM SA. The Deutsche Lufthansa AG, as part of the cartel, triggered the legal proceedings by self-denunciation. Thus this airline benefits from complete immunity from the sanction. As subsidiary of the Deutsche Lufthansa AG, Swiss International Air Lines AG also benefits from full immunity from the sanction. The investigation has been characterised by a high complexity of proceedings because of the large number of air transport agreements with third party states, noted Comco.