Carrier wants other 'cartel' members to share compensation payouts British Airways (BA) has issued legal proceedings against 32 airlines in relation to the price-fixing scandal that continues to affect the industry. Law firm Hausfeld & Co has confirmed reports that BA has brought 32 other airlines into proceedings it faces in the High Court in London. These airlines include Air France, KLM, Cathay Pacific, Cargolux, Qantas, Emirates, SAS, Singapore and South African.
BA has issued Part 20 proceedings, which would allow it to seek compensation from other airlines alleged to have fixed cargo prices between 2000 and 2006, if it is forced to pay damages to its customers as a result of a price-fixing lawsuit. BA refused to comment directly on the news, but a spokesman said: “We will continue to contest any class actions brought by cargo customers.”
The proceedings BA has launched relate to an action brought by two flower importers on a representative basis in the English High Court by Hausfeld & Co. Hausfeld said: “BA is responsible for all of the loss suffered by victims of the air freight cartel. With this move, BA is hoping to recover contributions for payments it is compelled to make, from other airlines.”
BA and other airlines have pleaded guilty to price-fixing in the US, Australia and Canada. Anthony Maton, of Hausfeld & Co, said: “We hope this will be a positive move, in that it will encourage airlines to recognise their European liability to shippers and to start the process of making sensible commercial settlements.” Hausfeld and another law firm, Claims Funding international (CFI), have signed a formal cooperation agreement to co-ordinate the pursuit of claims for shippers within the EU. The two firms represent US$5-6 billion of combined air cargo traffic purchased by shippers in the cartel period.
In the US, Air France-KLM recently announced a $87 million settlement and Lufthansa will pay $85 million. CFI has also revealed plans to file a claim for €335 million (US$420m) against Air France-KLM on behalf of European shipper customers. The 32 airlines brought into the proceedings are: Air Canada, Societe Air France, KLM, Air New Zealand, All Nippon Airways, American Airlines, Cargolux, Cathay Pacific, Japan Airlines International, Korean Airlines, Lufthansa Cargo, Deutsche Lufthansa, Martinair Holland, Qantas, Singapore Airlines Cargo, Singapore Airlines, South African Airways, Thai Airways International, United Air Lines, Swiss International Air Lines, Scandinavian Airline System Denmark-Norway-Sweden, Air France-KLM, Scandinavian Airline System, Aviainform, Scandinavian Airline System Cargo Group, AMR Corporation, Emirates, Japan Airlines, LAN Cargo, LAN Airlines, Malaysia Airlines Cargo, Malaysian Airline System, Nippon Cargo Airlines and UAL Corporation. For those that are not ready, New York-based Mariners Harbour Cargo Terminal is offering clients exporting from JFK, Newark and La Guardia airports a buffer period, by providing free screening during August.
Source: Damian Brett, IFW News, 23 July 2010