Bruce Barnard | Jul 29, 2010 1:35PM EDT
South African antitrust regulators called for seven airlines to be fined 10 percent of their annual local revenue for fixing fuel surcharges and freight rates for cargo flown in and out of the country over a ten-year period.
The country's Competition Commission recommended the allegations against the carriers — British Airways, South African Airways Cargo, Air France Cargo-KLM Cargo, Alitalia Cargo, Cargolux, Singapore Airlines and Martinair — be referred to the country’s Competition Tribunal for adjudication.
Lufthansa Cargo admitted the charges, but was granted immunity from prosecution on condition it cooperates in the investigation and prosecution.
The commission started investigations in 2006 following Lufthansa’s application for leniency. It found the collusion between the eight carriers began in 1996 when they agreed on the timing and amount of fuel surcharges on cargo.
Lufthansa Cargo, Air France and KLM also face separate allegations of fixing cargo freight rates on particular routes.
Contact Bruce Barnard at brucebarnard47@hotmail.com.