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Airlines Facing EU And US Cartel Probe

by Ulrika Lomas, for LawAndTax-News.com, Brussels

16 February 2006

The European Commission and the US Department of Justice have both commenced investigations into possible price-fixing activities by international airlines.

It emerged on Tuesday that airlines including British Airways, Air France, Lufthansa, Cargolux were the targets of early morning "unannounced inspections", in addition to the European headquarters of Japan Airlines Corp. American Airlines and United Airlines were also reportedly contacted in connection with the investigation.

The EC's Competition spokesman, Jonathon Todd explained that:

"The Commission has reason to believe that the companies concerned may have violated Article 81 (of the) EC Treaty, which prohibits practices such as price-fixing."

However, he added that the investigation does not mean that the airlines in question "are necessarily guilty of anti-competitive behaviour and it does not pre-judge the outcome of our investigations".

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