SAA escapes Europe fine - but American probe continues

| Friday November 12, 2010 00:00

But the local airliner remains under investigation for price-fixing and collusion in the US, Australia and Switzerland.The European Commission fined 11 air cargo airlines a total of Û799,445m for operating a worldwide cartel which affected cargo services within the European economic area. The airlines are accused of co-ordinating their action on surcharges for fuel and security without discounts over a six-year period. Despite the confidence that SAA had in its case, the commission's decision must come as a huge relief to the airline's management. The largest fines were imposed on Air France, at Û182,92m and KLM, at Û127,16m.

The other airlines include Air Canada, British Airways, Cathay Pacific, Cargolux, Japan Airlines, LAN Chile, Martinair, SAS, Singapore Airlines and Qantas.Lufthansa and its subsidiary Swiss received full immunity from fines under the commission's leniency programme, as it was the first to provide information about the cartel.

The commission also dropped charges against a further 11 carriers - of which SAA was one - and a consultancy firm investigated for the same reason. SAA said in its annual report, ahead of Tuesday ruling, that its 'legal team is strongly of the view that the evidence against SAA is fragmented and inconclusive and is insufficient to constitute an infringement of Article 81(1), let alone a single and continuous infringement and that SAA ought to be removed from the commission's final decision and not be subject to a fine.' At the same time, the airliner faces charges it fixed prices and colluded in the US market place, along with Australia and Switzerland - (Business Day)