Cargolux, Cathay Appeal Price-Fixing Fines

Cargolux said Wednesday it will appeal the European Union’s $109 million fine for participating in an international price fixing cartel, making the all-cargo carrier the second airline to formally challenge penalties in the worldwide cargo pricing investigation.

Cathay Pacific said on Tuesday it has appealed a $77.7 million EU fine for its participation in the cartel.

Luxembourg-based Cargolux received the third highest penalty when EU trust busters fined 11 airlines a total of $1.1 billion for colluding to set fuel and security surcharges between 2000 and 2006.

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“After careful consideration the company has decided to file an appeal against the decision of the European Commission,” Cargolux said in a statement. “At this stage Cargolux does not wish to make any further comments on this pending case.”

Cargolux’s top two executives, Cargolux CEO Ulrich Ogiermann and Senior Vice President Sales and Marketing Robert van de Weg, are facing criminal charges for participating in price fixing in the United States, where Cargolux was fined $119 million in 2009.

Air France-KLM Cargo was hit with the biggest EU penalty, of $476 million, followed by British Airways which was fined $145 million.

Meantime, Hong Kong-based Cathay also is appealing against a similar decision by the Korean Fair Trade Commission in its investigation of the alleged price fixing cartel.

“We believe we have good grounds for making these appeals, but, as these matters are being litigated, we are not in a position to provide additional information at this stage,” the company said.