The European General Court has upheld European Commission fines totalling EUR477.46 million euros (USD532.46 million) against Air France-KLM, Martinair (Netherlands), Cargolux, and Singapore Airlines for their part in an air cargo pricing cartel more than 20 years ago.
However, the court has reduced fines imposed and in some cases partly annulled decisions by the European anti-trust regulator relating to JAL - Japan Airlines, Air Canada, British Airways, Cathay Pacific, SAS Scandinavian Airlines, LATAM Airlines, and its subsidiary LATAM Cargo Chile, according to a statement issued by the Court of Justice of the European Union on March 30, 2022.
As reported, the case harks back to EUR790 million (USD881 million) worth of fines originally imposed by the Commission on November 9, 2010, on eleven global airlines that had colluded to fix fuel and security surcharges between December 1999 and February 2006.
The airlines involved were Air Canada, Air France-KLM, British Airways, Cargolux, Cathay Pacific Airways, Japan Airlines, LATAM/LAN Cargo, Martinair, SAS, Singapore Airlines, and Qantas. Lufthansa and Swiss received full immunity from fines after they provided information about the cartel. The fines against Martinair, Japan Airlines, Air France-KLM, Cathay Pacific, LATAM Chile, Qantas, Air Canada, Cargolux, and British Airways were later reduced after they cooperated with the investigation.
On December 16, 2015, the General Court upheld actions brought against the 2010 decision and annulled it on legal technicalities. After addressing these, it reinstated the fines on March 17, 2017.
According to the statement, the fines now upheld are as follows:
- Air France-KLM: EUR310,08 million (USD345.86 million);
- Cargolux: EUR79.90 million (USD89.11 million);
- Singapore Airlines: EUR 74.80 million (USD83.42 million);
- Martinair: EUR15.40 million (USD17,17 million).
The court reduced the fines for:
- Air Canada: Down from EUR21.04 million (USD23.46 million) to EUR17.95 million (USD20.02 million);
- Japan Airlines: Down from EUR35.70 million (USD39.82 million) to EUR28.88 million (USD32.21 million);
- British Airways: Down from EUR104.04 million (USD116.05 million) to EUR 84.46 million (USD93.76 million);
- Cathay Pacific Airways: Down from EUR57.12 million (USD63.72 million) to EUR47.14 million (USD52.58 million);
- LATAM and LAN Cargo: Down from EUR8.33 million (USD9.29 million) to EUR2.24 million (USD2.49 million).
SAS's and the SAS Cargo Group’s total penalties were re-adjusted resulting in a reduction of the total from EUR75.53 million (USD84.26 million) to EUR70.02 million (USD78.12 million).
The airlines have two months to appeal to the European Court of Justice against the decision of the General Court.