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SA Competition Commission turns airline cases to Competition Tribunal

South African antitrust regulator: Penalize carriers in price-fixing scheme

Robb M. Stewart  Jul 29, 2010

JOHANNESBURG - South Africa's antitrust regulator said Thursday it is recommending a penalty of 10% of annual revenue against airlines accused of fixing prices on fuel surcharges and cargo rates.

The Competition Commission said it has referred cases of collusion in the air cargo market against eight airlines to the country's Competition Tribunal.

The cases are against South African Airways Ltd., British Airways PLC, Air-France-KLM (AF.FR), Alitalia SpA, Cargolux Airlines International SA, Singapore Airlines Ltd., Martinair and Deutsche Lufthansa AG, although Lufthansa has been granted conditional immunity from prosecution after it applied for leniency in March 2006.

The commission said it began its investigation into the allegations following Lufthansa's application, in which it admitted that various surcharges and price increases were agreed with its competitors.

Lufthansa, Cargolux, Air France and KLM also face allegations of fixing cargo rates, the commission said. It said these airlines identified routes and reached agreements to increase cargo rates on those routes.

A spokesman for South African Airways wasn't immediately available for comment.

South African antitrust regulator: Penalize carriers in price-fixing scheme
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Source: Dow Jones Newswires

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