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Air France, KLM cargo cartel fine annulled

The Swiss Federal Administrative Court has annulled a EUR3.9 million euro (USD4.26 million dollar) fine imposed on Air France, Air France-KLM, and KLM Royal Dutch Airlines in relation to a decades-old alleged cargo cartel that has ensnared multiple airlines and their subsidiaries.

A January 18 statement issued by Air France's legal team, Linklaters, said the court annulled the Swiss Competition Commission-issued fine in a December 20 judgement. "The Federal Administrative Court accepted Air France's arguments, particularly regarding the lack of jurisdiction for certain practices," the statement read.

Notably, the matter concerned only the three entities, with Martinair, British Airways, Air Canada, JAL - Japan Airlines, Cathay Pacific, Singapore Airlines, SAS Scandinavian Airlines, LATAM Airlines, and Cargolux not being party to the proceedings. The case stemmed from alleged cargo cartel activity between 1999 and 2006 among the carriers. In 2010, the European Commission began issuing a series of fines to the airlines for the alleged fixing of air cargo charges, many of which have been successfully overturned...

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