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ARTICLE · 15 FEBRUARY 2011

Aviation Bulletin - February 2011

Clyde & Co
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The air cargo cartel case - lessons for the airline industry On 9 November 2010 the European Commission finally issued its long awaited decision and fined 11 airlines a total of €799 million for price fixing on fuel surcharges and security surcharges and refusing to pay commission on surcharges.

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The air cargo cartel case - lessons for the airline industry On 9 November 2010 the European Commission finally issued its long awaited decision and fined 11 airlines a total of €799 million for price fixing on fuel surcharges and security surcharges and refusing to pay commission on surcharges. This included over €300 million for Air France-KLM and €104 million for British Airways. SAS had its fine increased by 50% to €70 million in view of its previous involvement in market fixing with Maersk Air in 2001. Appeals by some or all of the airlines are likely. The decision contains important guidance for the aviation sector on the application of EU competition rules.

Over twenty airlines and a consultancy company were involved in a lengthy cartel investigation by the Commission. The investigation started in February 2006 following Lufthansa's revelations to the Commission in late 2005. The Commission's allegations were almost entirely based on "leniency" applications

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