South Africa Competition Commission Refers Air Cargo Probe for Prosecution
South African antitrust authorities recommended airlines, including British Airways Plc and Singapore Airlines Ltd., be fined for fixing the price of fuel surcharges and rates on cargo flown in and out of the country.
The Competition Commission recommended yesterday that the allegations against the airlines be referred to the nation’s Competition Tribunal, which will consider the case for prosecution, the Pretoria-based commission said in an e-mailed statement today.
South African Airways, Air France-KLM, Alitalia SpA, Cargolux Airlines International SA, Martinair Holland NV and Deutsche Lufthansa AG also face charges, the commission said.
Investigators have asked the Competition Tribunal to impose a fine of 10 percent of the annual local turnover on each of the airlines involved, except Lufthansa which was granted immunity from prosecution on condition it co-operates with authorities, the commission said.
“In its application Lufthansa admitted that various surcharges and price increases were agreed upon with its competitors and it was granted conditional immunity from prosecution,” it said.
Investigations began in March 2006 following Lufthansa’s application for leniency and found that the airlines’ anti- competitive behavior began in 1996, when they agreed on the timing and amount of fuel surcharges on cargo. Lufthansa, Cargolux, Air France, and KLM face allegations of fixing cargo rates after investigators found they colluded to set prices on particular routes, the commission said.
To contact the reporter on this story: Garth Theunissen in Johannesburg gtheunissen@bloomberg.net
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