Release Date: 09 November 2010
Release ID: 4994
Luxembourg, 9 November 2010 –Cargolux Airlines International S.A. and a number of other airlines were fined by the European Commission for their participation in an alleged cartel in airfreight today. For Cargolux, the fine amounts to €79.9 million. If not challenged by Cargolux, today’s decision will conclude the cartel investigations initiated by the European Commission on 14 February 2006.
Commencing in 2008, Cargolux entered into plea agreements with several antitrust authorities including the United States Department of Justice (DOJ) and authorities in Canada, New Zealand and several other countries in connection with alleged anti-competitive behavior in the airfreight sector involving numerous carriers.
“Since 2006, Cargolux has cooperated intensively with various authorities, including the European Commission, throughout the investigation and the legal proceedings” says Marc Hoffmann, Chairman of the Board of Cargolux. “The fine does not seem to reflect a discount to take into account the financial turbulences that recently affected cargo carriers generally and Cargolux in particular. When added to fines already due to other anti-trust authorities this seems a very harsh punishment indeed” says David Arendt, EVP & CFO of Cargolux. He added that the Company made numerous presentations to and engaged intensively with the Commission on this issue.
The fine was provisioned in previous years and will therefore only have a minor impact on the financial results of 2010. Cargolux is analyzing with its lawyers whether to launch an appeal against the Commission’s decision.
Cargolux, based in Luxembourg, is Europe’s largest all-cargo airline, operating a modern fleet of 14 B747-400 freighters; another B747-400F is leased to Cargolux Italia. Its worldwide network coves 90 destinations, 60 of which are served on scheduled all-cargo flights. The company has more than 85 offices in over 50 countries, and also offers an extensive trucking network to more than 70 destinations in Europe and the US, as well as charter and aircraft maintenance services. Cargolux employs more than 1400 staff worldwide.
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