KLM ordered to pay €127m fine for price fixing in cargo sector

Photo: DutchNews.nl
Photo: DutchNews.nl

National airline KLM has had a €127 mn fine for fixing the price of fuel and security costs in the cargo sector upheld by a European court.

KLM, its partner Air France and its subsidiary, freight carrier Martinair, were among 11 airlines that were penalised almost €790 mn for forming a cartel between 1999 and 2006.

The airlines, which also included British Airways, SAS and Air Canada, were originally fined by the European Commission in 2010, but the fine of almost €800 mn was quashed for technical reasons.

Martinair’s penalty was reduced when a new fine was imposed in 2017. Eight of the airlines appealed to the General Court of the European Union, but this was dismissed on Wednesday.

Lufthansa and Swiss International Air Lines were also complicit in the cartel, but escaped a fine because they brought the abuses to the EU’s attention.

The parties have two months to appeal against the decision to the European Court of Justice.


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