Bruce Barnard | Nov 09, 2010 12:05PM EST
Cargolux, the Luxembourg-based all-cargo airline Nov. 9 said the European Union fined the carrier $112 million for participating in an illegal air cargo cartel.
"The fine does not seem to reflect a discount to take into account the financial turbulences that recently affected cargo carriers generally and Cargolux in particular," said Marc Hoffmann, chairman of the Cargolux board.
At the end of October, a federal grand jury in Miami indicted Cargolux CEO and President Ulrich Ogiermann and Senior Vice President Sales and Marketing Robert van de Weg for participating in a conspiracy to fix and coordinate surcharges on air cargo shipments to and from the U.S.
Cargolux said the fine would not have a major impact on its earnings as it had already made provisions for financial penalties.
The European Commission, the EU's executive, also fined "a number of other airlines," Cargolux said. The Commission announced fines on 11 airlines later Tuesday, closing a four year investigation into alleged conspiracy to fix prices, mainly for fuel surcharges.
-- Contact Bruce Barnard at brucebarnard47@hotmail.com.
