British Airways fined £90m for cargo 'cartel'

British Airways aircraft taxi at Heathrow Airport near London, Britain October 11, 2016. REUTERS/Stefan Wermuth - RTSRSX7

The European Commission hands penalties totalling almost €800m to airlines for their role in an alleged price-fixing ring. British Airways was among the companies sanctioned

BRITISH Airways is among 11 airlines that have been fined a total of €776m (£674m) by the European Commission over an alleged air cargo cartel.

BA will have to pay just over €104m (£90.5m) for its part in the deception, which involved collusion to fix the level of fuel and security surcharges, officials said.

Air France-KLM was worst hit and must pay €310m (£270m).

The penalties were re-imposed by the Commission after its original judgment in 2010 was thrown out by a court because of a procedural error.

Officials said that legal decision had no bearing on the existence of the cartel, which operated between 1999 and 2006.

The EU said the other carriers involved were Air Canada, Cargolux, Cathay Pacific Airways, Japan Airlines, LAN Chile, Martinair, Qantas, SAS and Singapore Airlines.

A 12th cartel member, Lufthansa, and its subsidiary, Swiss International Air Lines, received full immunity from fines.

Margrethe Vestager, the commissioner in charge of competition policy, said: “Millions of businesses depend on air cargo services, which carry more than 20% of all EU imports and nearly 30% of EU exports.

“Working together in a cartel rather than competing to offer better services to customers does not fly with the Commission.

“Today’s decision ensures that companies that were part of the air cargo cartel are sanctioned for their behaviour.” news.sky.com