South Africa next to target cargo cartel

SOUTH Africa’s Competition Tribunal is considering the prosecution of eight airlines for their part in a global airfreight cartel that started in 1996 and ran for 10 years.

Competition Commission investigators allege that the cartel colluded to fix fuel surcharges on airfreight between 1996 and 2006.

Air France-KLM, Alitalia, British Airways, Cargolux, Lufthansa, Martinair, Singapore Airlines and South African Airways all face being potentially charged by the tribunal.

Investigators have asked the Competition Tribunal to fine the airlines 10 per cent of their annual local turnover. Lufthansa was granted immunity from prosecution on condition it cooperates with authorities.

“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,” the commission said.

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