Settlement Agreements In Air Cargo Industry Confirmed

Settlement agreements in air cargo industry confirmed

On 22 October 2012 the Competition Tribunal (Tribunal) confirmed a settlement agreement between British Airways (BA) and the Competition Commission (Commission). This agreement follows an investigation by the Commission into the setting of fuel surcharges by BA and its competitors in the international market for air freight and/ or cargo services, including services into and from South Africa. BA has agreed to pay an administrative penalty in the amount of approximately ZAR 12 million to the Commission. The Commission initiated its complaint in March 2006.

In another matter, the Tribunal confirmed a settlement agreement between Air France Cargo (Air France) and KLM Cargo (KLM). This agreement follows an investigation into selling prices for cargo service and in respect of which Air France and KLM have agreed to collectively pay an administrative penalty of approximately ZAR 25 million.