Joint EU/US cartel crack-down on cargo airlines

EU and US competition authorities have launched an investigation into possible price-fixing in the air cargo market with surprise inspections of major airline companies.

On 14 February 2006, officials from the European Commission carried out raids on the offices of several cargo airline companies across Europe, while the US Department of Justice has issued subpoenas. 

Reports state that the investigation concerns possible price-fixing among the world’s largest transatlantic air cargo carriers, extending across Europe, the US and Asia.

Names of the companies involved have not been released but British Airways, Cathay Pacific, Lufthansa, Air-France-KLM and Luxembourg’s Cargolux have confirmed that they are part of the investigation. Japan Airlines Corp and two South Korean airlines have also been subject to searches of their premises.

The European Commission has powers to carry out unannounced ‘dawn raids’ on companies suspected of cartel activity in the EU and to seize documents to be used in an investigation. If allegations are substantiated, fines of up to 10% of a company’s annual turnover can be levied.

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