CURRENT CASES
Air Cargo
The Cartel
The European Commission (EC) announced on 9 November 2010 its decision to fine 11 air cargo carriers a total of €799,445,000 for operating a worldwide cartel which affected cargo services within the European Economic area (EEA). Several known airlines are among the 11 undertakings fined, namely Air Canada, Air France-KLM, British Airways, Cathay Pacific, Cargolux, Japan Airlines, LAN Chile, Martinair, SAS, Singapore Airlines and Qantas. The cartel members coordinated various elements of price for a period of over six years, from December 1999 to 14 February 2006. The cartel arrangements consisted of numerous contacts between airlines, at both bilateral and multilateral level, covering flights from, to and within the EEA. There are other investigations concerning the cartel on record in the US, Canada, Australia, New Zealand, South Korea and South Africa. These foreign investigations have led to yet more fines being imposed on the 13 airlines implicated in the EC decision as well as on 12 additional airlines. Foreign investigations are ongoing.
Our Actions
Hausfeld commenced proceedings against BA in the High Court in London on 18 September 2008 on behalf of two UK flower importers who are direct and indirect purchasers of air freight services, the prices for which were inflated by the air cargo cartel between December 1999 and 14 February 2006 (the Emerald Action). Since then almost 300 claimants have been added to the Emerald Action, with many more now preparing to be added to the claim. Among them are companies listed in the Fortune Global 500 and Forbes Global 2000, as well as both Business Week and Interbrand 100 Best Global Brand.
The Emerald Action was commenced against BA on the basis of joint and several liability: that is on the basis that BA are liable for the whole loss arising from the cartel and not just the harm to their own customers. Consequently, BA has now added to the Emerald Action all of the co-cartelists which were named in the EC’s decision. BA’s move made the High Court in London the natural hub of all EU litigation in respect of the air cargo cartel as it is the first court seized of the matter. Proceedings are at present temporarily stayed pending the publication of the EC decision. Once it is published the Emerald Action will be able to proceed on a strong footing, as the EC decision is binding on the Court insofar as it relates to the named defendant air cargo carriers.
Settlements
Separately, Hausfeld has already announced settlements with Lufthansa, SAS, Air France-KLM and American Airlines, Cargolux and others in respect of traffic to, from and within the US:
|
Defendant |
Settlement Amount (US$) |
|
Lufthansa |
85,000,000 |
|
Air France/KLM/Martinair |
87,000,000 |
|
American Airlines |
5,000,000 |
|
Japan Airlines |
12,000,000 |
|
SAS |
13,930,000 |
|
All Nippon Airways |
10,400,000 |
|
Cargolux |
35,100,000 |
|
Qantas |
26,500,000 |
|
Thai Airways |
3,500,000 |
|
British Airways |
89,512,000 |
|
Lan/ABSA |
66,000,000 |
|
Total |
433,942,000 |
Contact
If you feel you have a claim, please register your interest via our contact page. When doing so, please include an estimate of the amount you spent on total air freight costs during the period December 1999 to March 2006.
