EU reimposes air cargo cartel fines.
On Friday, the European Union reimposed fines of 776 million euros on 11 airlines for operating cargo cartel that had been annulled by a court.
The European commission said it had addressed the EU’s General court’s procedural issues and had decided to reinstate the fines that were originally imposed and for colluding on fuel and security surcharges between 1999 and 2006.
“Air Canada maintains that it has at all times respected all applicable laws with regard to competition. We intend to vigorously contest the European Commission’s recent decision,” spokesman Peter Fitzpatrick said in an emailed statement.
It faces a fine of about $30 million (21 million euros).
Air France had been fined the most with 182.9 million euros. KLM, merged with French carrier was hit for 127.2 million euros.
“Air France-KLM will analyze the new decision, and the advisability of appealing it,” the group said in a statement. It added the fines had already been fully covered in its financial accounts since 2010, when the initial EU decision came in.
One more of the companies, Scandinavian Airlines, kept up that its division SAS Cargo had not taken part in the worldwide cartel, and that it will request the choice.
“We strongly question the European Commission’s move to re-impose a decision that has already been annulled once,” SAS spokeswoman Marie Wohlfahrt said. “SAS takes the competition rules extremely seriously and does not accept any breaches. We have a clear regulatory framework in place for compliance with competition law.”
The Stockholm-based carrier said its 70.2 million euro fine will be perceived as a non-repeating cost in its income for the second quarter of 2016/2017.
British Airways now faces a fine of 104 million euros.