EU probes suspected air freight cartel
(BRUSSELS) - EU antitrust regulators lodged formal cartel charges against several air freight companies on Friday, taking the first step in legal actions that could lead to hefty fines.
"The European Commission can confirm that a statement of objections has been sent to a number of companies, concerning their alleged participation in a cartel in the provision of air freight services," it said in a statement.
Europe's top competition watchdog did not name the targeted companies, but Air France-KLM, Lufthansa, Japan Airlines and Scandinavian carrier SAS acknowledged that they had received formal charge-sheets.
After receiving the charges, the companies have a chance to respond before the Commission decides whether to fine them.
EU Competition Commissioner Neelie Kroes is leading a "no-tolerance" crusade against cartels and has so far this year imposed more than 3.3 billion euros (4.7 billion dollars) in fines on members of such illegal clubs, making 2007 a bumper year.
Users of air freight transport have complained for years about surcharges that airlines were applying, prompting investigations by antitrust regulators.
In 2006, antitrust regulators in the EU, Asia and the United States raided the offices of major airlines, but declined to give details about their investigations.
But SAS said at the time that the EU suspected the targeted airlines of having agreements covering surcharges to offset external cost increases.
These were high fuel prices, costs for additional security measures in the wake of the September 11, 2001 attacks in the United States, and surcharges for war-risk insurance premiums in connection with the 2003 Iraq war, SAS said then.
On Friday, SAS said it would provide regulators with written comments to the allegations, and the Commission's final judgement "is not expected to be known before late in 2008."
"Infringement of competition rules is entirely unacceptable and we condemn it unreservedly," SAS chief executive Mats Jansson said.
JAL, Asia's largest carrier, said it was still considering its response after receiving the cartel charges following an inspection of its cargo and mail office in Frankfurt in February 2006.
In November the Japanese carrier said it had also put aside 11.5 billion yen (102 million dollars) to prepare for possible fines for alleged anti-competitive practices.
A Lufthansa spokesman acknowledged that the German carrier's cargo business was targetted by the charges and said: "We are closely cooperating with authorities concerned."
Air France-KLM said that "since the launch of its investigation, the two companies have cooperated with the European Commission in the framework of its investigation."
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