British Airways today agreed to pay $89.5 million to scores of air freight shippers to settle a U.S. class action lawsuit over its involvement in a global cartel that fixed cargo rates.
The deal, which must be approved by a federal judge in New York, covers alleged price fixing by BA and more than 20 Asian, European and Latin American airlines from 2000 to 2006.
Cargo price-fixing news from JOC:
EVA Air Pleads Guilty to Cargo Price-Fixing
“We are pleased that we have reached a settlement over these claims by cargo customers in the U.S.,” BA said in a statement.
Chile’s LAN Cargo and its subsidiaries also reached a $66 million settlement with shippers in the same lawsuit today.
So far 13 airlines have reached civil agreement with shippers for a total of $367.9 million, including Air France-KLM, which to date has paid out $87 million.
BA pleaded guilty to its role in the cartel four years ago and was fined $300 million by the U.S. Department of Justice.
The U.S. has so far fined 20 airlines more than $1.7 billion for their participation in the cargo cartel.
The European Union fined BA and nine other carriers $1.2 billion in November for fixing cargo fuel and security surcharges.
--Contact Bruce Barnard at email@example.com.