Eleven airlines which faced charges of cargo cartel pricing in 2010, which were overturned in 2015, may again face penalties of almost EUR800 million (USD855 million). Citing confidential sources, Bloomberg reports that the airlines have been attempting to reach a settlement with the European Commission (EC) in order to avoid consumer lawsuits. Those negotiations have failed and EU Competition Commissioner Margrethe Vestager will likely attempt to reimpose the earlier fines.
The airlines – Air Canada, Air France-KLM Royal Dutch Airlines, British Airways, Cargolux, Cathay Pacific, JAL - Japan Airlines, LAN Airlines, Martinair (Netherlands), and Qantas – were found to have fixed their fuel and security surcharges for cargo between 2000 and 2006. Lufthansa and its subsidiaries Swiss and Lufthansa Cargo were granted immunity for being the first to cooperate with the EC's investigation into the cartel's activities. However, on appeal, it was found that the original investigation contained inconsistencies and the penalties were overturned in 2015.
At the time, the Commission noted that the grounds for appeal were merely procedural. "We note that the Court did not rule on whether the Commission could prove the infringement or not," it said, indicating that it would consider the decision and its next steps.
The airlines have since been hit with EUR7 billion (USD7.47 million) of damages claims across the EU by companies that were overcharged for shipping, including Bosch, DB Schenker and BMW. Without a settlement, these cases are likely to stretch on for many years.
Late last year, Politico reported that the Commission had sought the financial data of the airlines, indicating that it could be close to issuing new sanctions. These are expected to come in the next few weeks.
