Dozen airlines face EU price-fixing charges, Lufthansa talks, wins immunity

THE European Commission has levelled charges against dozen airlines alleging price-fixing by Air France-KLM, Cargolux, British Airways, Japan Airlines and Scandinavian Airline (SAS) among others, reported the London Independent newspaper.

Lufthansa, Europe's second-biggest airline, is working with the commission's anti-trust investigation and has won conditional immunity, said the newspaper.

SAS said it would not comment until it completes an internal review. "Infringement of competition rules is entirely unacceptable and we condemn it,"

Japan Airlines said its cargo offices in Frankfurt had been raided in February. British Airways was fined $300 million by US on August 23 after pleading guilty to two criminal counts of conspiracy in setting illegal fuel surcharges. The company was accused of fixing prices on air cargo in 2002 and on passenger flights in 2004.

Virgin Atlantic Airways disclosed its role in passenger fare price-fixing, while Lufthansa confessed to participating in cargo price-fixing scheme with British Airways and Korean Air.

Qantas also admitted its role in the air cargo price fixing scheme in response to a US investigation and agreed to pay a $61 million fine, which followed guilty pleas from BA and Korean Air last August, when each carrier was fined $300 million.

Korean Air Lines said today the company hadn't received any document from the EU. Nor had American Airlines.

British Airways shares fell 0.2 per cent to 308.75 pence, Air France rose 1.4 per cent and SAS slipped 0.3 per cent. Lufthansa rose 0.9 per cent.