EU Top Court Upholds 776 Million Euro Fines for Airlines
The Court of Justice dismissed airline appeals against 776 million euros in fines for a cargo cartel. Only SAS Cargo Group saw a partial reduction in its fine.
The European Union's highest court has delivered a final blow to several major global airlines, rejecting their appeals against fines totaling 776 million euros for participating in an air cargo cartel. The decision, handed down in Luxembourg, largely solidifies the penalties issued by antitrust regulators nearly a decade ago.
The ruling involves a significant list of international carriers, including Air France-KLM S.A. based in France, and International Consolidated Airlines Group S.A. from the United Kingdom. Other prominent participants in the legal challenge included Air Canada from Canada, LATAM Airlines Group S.A., and SINGAPORE AIRLINES LTD representing Singapore.
"The Court of Justice rejects almost all of the arguments put forward by the airlines."
The court also dismissed the appeals of Deutsche Lufthansa AG, Japan Airlines Co., Ltd. from Japan, and CATHAY PACIFIC AIRWAYS. Additionally, the ruling affected carriers such as Martinair Holland and Koninklijke Luchtvaart Maatschappij, both with significant operations in the Netherlands.
The European Commission, acting as the primary competition enforcer for the bloc, reissued the fines in 2017 after a procedural error had previously caused a lower tribunal to scrap an initial 799 million euro penalty from 2010. While most airlines were unsuccessful in their latest legal bid, the court noted a single exception regarding SAS Cargo Group.
"Only the appeal brought by SAS Cargo Group is upheld in part, on the grounds of errors made by the General Court in calculating the amount of the fine imposed on that airline."
The conclusion of these cases, which include specific filings for Cargolux Airlines and various subsidiaries, marks the end of a long-running legal battle over price-fixing and market manipulation within the air freight sector.
