Litigation firm Claims Funding International (CFI) plans to file a claim for €335 million (US$420m) against Air France-KLM on behalf of the firm’s European shipper customers.
CFI said the claim follows the airline group’s admission of price-fixing to regulatory authorities in the US and its agreement to pay $87 million to direct purchasers of air freight services in exchange for a release of claims. But, CFI said, the carriers did not offer to compensate indirect purchasers, such as European shippers, that suffered losses as a result of the cartel action believed to have occurred between January 2000 and late 2006.
CFI said: “The airlines have agreed to pay an $87 million settlement in respect of liability under US law for their acknowledged part in an air cargo cartel that breached competition laws around theworld, but have refused to offer their European indirect purchaser victims any compensation.” CFI is acting on behalf of a large group of European claimants that spent more than €3.35 billion on international air freight services during the period the cartel was in operation. CFI MD Peter Koutsoukis said: “It is regrettable that one of Europe’s great airlines would decide to pay damages to its US clients, but offer nothing to European-based customers. “European cartel victims have remained silent for too long, but now they are standing up in large numbers and demanding their right to redress”.
Another law firm, Hausfeld & Co, is also filing a claim against Air France-KLM on behalf of other customers. As a result, Hausfeld & CFI have signed a formal co-operation agreement to co-ordinate the pursuit of claims within the EU. Hausfeld and CFI represent some $5-6 billion of air cargo services purchased by shippers during the cartel period.
Air France-KLM and subsidiary carrier Martinair have admitted price-fixing to regulatory authorities in the US, Australia and Canada, and were recently fined by the regulatory authority in South Korea. Substantial fines have been paid by the carriers and Martinair executive Frank de Jong received an eight-month prison sentence.
Source: Damian Brett, IFW, 14 July 2010