Air France-KLM to pay $87m price-fixing fine

Air France-KLM has agreed to pay $87m in settlement for civil damages relating to price fixing in its cargo division. The France-Dutch aviation giant follows the likes of British Airways, Cathay Pacific, Qantas and Korean Air, which have all paid significant fines following an undercover investigation into global air freight price fixing between 2000 and 2006.

The US Department of Justice has imposed fines of more than $1.6bn as a result of the investigation, which began in 2006. The settlement by Air France-KLM must also be agreed by US courts.

The investigation has uncovered that the airlines involved created a series of global cargo cartels, colluding on prices on specific cargo routes and then monitoring rates to ensure that the rates were enforced.

Source: BTN

13.07.10