Iata distances itself from price-fixing allegations

Charges of airline price-fixing on the SA cargo routes have been loudly rejected by the International Air Transport Association (Iata). Speaking from Geneva, the body’s director of corporate communications, Anthony Concil, said that the SA Competition Commission statement about the association’s involvement was incorrect “Iata has never operated a mechanism for determining fuel surcharges,” he said, “and has absolutely no involvement in setting them.” They are set by individual airlines, Concil added, and the association has consistently advised its members to determine surcharges “in a unilateral exercise of business judgment and in compliance will all relevant laws”. The fact that the airlines named in the CC’s inquiry are its members should not be seen as implying any Iata involvement. Concil insisted that none of its officers or employees were implicated in the coordinated worldwide investigation of cargo surcharge price co-ordination. This follows a Competition Commission statement released last week accusing eight airlines of fixing the price of the fuel surcharges and cargo rates on cargo flown into and out of South Africa. Airlines allegedly involved in the price fixing conduct include British Airways, South African Airways Cargo, Air France Cargo-KLM Cargo, Alitalia Cargo, Cargolux International SA, Singapore Airlines, Martinair Cargo and Lufthansa Cargo. The Commission has asked the Tribunal to impose an administrative penalty of 10% of annual turnover on each of the airlines involved, except Lufthansa which was granted conditional immunity.