SAA faces probe over cargo price-fixing
The airlines face allegations of fixing the price of fuel surcharges and cargo rates on freight flown into and out of SA between 2000 and 2006.
The airlines involved are British Airways, SAA Cargo, Air France Cargo-KLM, Alitalia Cargo, Cargolux International, Singapore Airlines, Martinair Cargo and Lufthansa Cargo.
Global investigation
The investigation has taken four years to complete and is linked to a broader global investigation by various competition authorities, including the European Union and the US.
Both the local and international investigations were sparked by Lufthansa Cargo applying for immunity from prosecution in exchange for co-operating.
Oupa Bodibe, advocacy and stakeholder manager at the commission, said yesterday that the airlines, as members of the International Air Transport Association (Iata), had agreed to a mechanism through which carriers would decide, based on current oil prices, on the timing and the amount of the fuel surcharge to be charged on cargo.
"Furthermore, Lufthansa, Cargolux, Air France-KLM face allegations of fixing cargo rates."
Iata spokesman Tony Council said the organisation had "absolutely no involvement in the setting of fuel surcharges".
Previous penalties
Airlines around the world have already paid substantial fines in various jurisdictions, the latest being an US$87m settlement paid by Air France-KLM and its Dutch subsidiary, Martinair, in the US.
In 2008, Air France-KLM agreed to pay a huge $350m criminal fine in the US and pleaded guilty to charges of collusion.
SAA spokesman Fani Zulu said yesterday that the commission had yet to serve SAA with the relevant documentation.
"Therefore we are not in a position to comment," he said.
In its 2009 annual report, SAA said it was being investigated by the European Union, the US, Australia and Switzerland.
Source: Business Day