News.com.au, AFP November 10, 2010 7:15AM
QANTAS is among 11 air cargo carriers fined a total of 800 million euros ($1.1 billion) by the European Commission for running a cartel.
The fines, totalling €799.4 million ($1.09 billion), were slapped on airlines for co-ordinating a cartel that covered flights from, to and within the European Economic Area.
Qantas was given one of the smallest fines, €8.9 million ($12.27 million), for its part in the cartel.
The cartel initially began with contacts between airlines to ensure that worldwide airfreight carriers imposed a "flat rate surcharge per kilo for all shipments," the commission said.
The co-operation expanded with the introduction of a security surcharge. The companies refused to pay a commission on such surcharges to their clients, the regulator said.
"It is deplorable that so many major airlines coordinated their pricing to the detriment of European businesses and European consumers," said
The Air France-KLM group was hit with the biggest fine, €310 million ($427.26 million),of which €183 million ($252.22 million)was for Air France and €127 million ($175.04 million) for KLM.
British Airways was fined €104 million ($143.34 million).
The other companies fined were Qantas, Air Canada, Martinair, Cargolux, Cathay Pacific Airways, Japan Airlines, LAN Chile, SAS and Singapore Airlines.
Lufthansa and its subsidiary Swiss International Air Lines escaped a fine under the commission's leniency program for being the first to provide information about the cartel.
The 11 cargo carriers co-ordinated their action on surcharges for fuel and security without discounts over a six-year period, between December 1999 and February 2006, the European Union's competition watchdog said.
Scandinavia's SAS group was fined €70.2 million and Luxembourg's Cargolux will have to pay€79.9 million.
In Asia, Singapore Airlines was fined €74.8 million, Cathay was hit with €57.1 million and Japan Airlines will pay €35.7 million. Air Canada must pay €21 million.
Five airlines applied for a reduction in the fine, claiming they were unable to pay it, but the commission said none of them met the conditions.
The commissions aid it dropped charges against another 11 carriers and one consultancy firm which it did not name.
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