CARGOLUX International has been fined $941 561 (R10.97 million) for being part of a cartel with four other airlines, including South African Airways (SAA), that directly or indirectly fixed elements of the selling prices for cargo services.
Neo Molefe for the Competition Commission told the tribunal hearing yesterday this case concluded all the matters related to this complaint, with the commission previously entering into settlement agreements with four other airlines and withdrawing charges against two others. Molefe said Lufthansa Cargo was the leniency applicant in the case.
The tribunal in 2012 confirmed settlement agreements entered into between the Competition Commission and SAA, Air France-KLM Cargo and British Airways and in March this year with Martinair Cargo.
The commission withdrew charges against Alitalia Cargo and Singapore Airlines.
British Airways agreed to pay a penalty of £871 116.50 (R15.9m), Air France Cargo-KLM Cargo collectively a fine of e1.81 million (R26.29m) and Martinair Cargo a fine of $533 517.38 in terms of settlement agreements they reached with the commission.
SAA, in terms of the settlement agreement it reached with the commission, agreed to pay a fine of R18.79 million, but this penalty was for a “suite of complaints” initiated by the commission against SAA.
Apart from the air cargo case, the penalty agreed with SAA was also for a number of other transgressions, including fixing prices and/or trading terms related to the sale of passenger airline tickets for prime cabins on routes to and from South Africa and Far East Asia with Cathay Pacific and price fixing of passenger airline tickets for the 2010 Fifa World Cup with British Airways/Comair, 1Time Airlines, Mango Airlines, SA Express and others.
These settlement agreements followed the commission in March 2006 initiating an investigation into alleged prohibited practices in the air freight industry. It found that Cargolux had agreed and/or engaged in a concerted practice with its competitors to fix prices for fuel surcharges by engaging in discussions and exchanging and confirming information on the movement of air cargo fuel surcharges by way of telephone calls and/or e-mails with its competitors.
These discussions and exchanges occurred from February 2002 until 2006.