Air France KLM rejects EU price fixing fine
Air France-KLM says the fine imposed on it by the European Commission for fixing air cargo prices is unreasonably high. The company, which controls Air France, KLM Royal Dutch Airlines and Martinair has announced it will appeal against “the decision taken by the judicial authorities in Luxembourg”.
The European Commission has fined 11 airlines for forming a cartel to rig cargo prices between May 2004 and February 2006. Air France has been fined over 182 million euros, KLM more than 127 million euros and Martinair 29.5 million euros.
The amount is higher than Air France-KLM was expecting and in excess of the provisions made by the company to cover a possible fine. The company says it will have to find an extra 127 million euros to pay the fine and this will damage its 2010/2011 results.
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