Major airlines to pay euro 800m fine for running air cargo cartel in Europe

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From Fazle Rashid
NEW YORK, Nov 11: Eleven reputed and major airlines are to pay a fine of euro 800 million for running air cargo cartel in Europe. Noteable among the airlines who have been penalised are British Airways, Air France-KLM, Qantas and JAL. The decision to impose fine came after a long four-year investigation by the European Commission (EC), Europe's top antitrust regulator. The airlines have been running the cartel for six years.
The companies who fear they were overcharged for the cargo service will now be encouraged to demand claims. The other affected airlines are Air Canada, Cathay Pacific and Singapore Airlines. Lufthansa, the German airline and its subsidiaries got immunity because it acted as "whistle blower" euphemism for leaking out the fraud. Two airlines Scandanavian Airlines System (SAS) and Air France-KLM will appeal for revision because of the dspropotinate size of the penalty. More than 20 international carriers have so far paid large fines in North America and Asia. The US Justice Department collected more than $1.6 billion as fines. Several airlines executives have served jail terms.
The airlines everywhere have been squeezing the passengers in recent times. They charge cancellation fee, extract exorbitant charge for an extra luggage, have stopped serving food and beverage on domestic flights, take extra money for travelling on week-ends and arbitrallily revise air fares marking peak and lean periods. And in the world of global diplomacy, Britain sprang a major surprise when its foreign secretary backed Brazil's claim for a permanent seat on the UN Security Council. The British move came a day after President Obama backed India's claim which was criticised by China whose expanding global influence Washington's wants to contain.
Obama backtracked from his earlier stand saying the US has no intension to contain China's global influence. The South American country has long campaigned for a UN seat. Brazil, like India, is what is known as BRIC (Brazil, India, China and Russia) nations. China and Russia are already permanent members of the UN Security Council.
"We will continue to call for reform of the UN including an expanded Security Council," British foreign secretary William Hague was quoted as saying. Brazil's case has been somewhat weakened because it in conjunction with Turkey had opposed sanctions on Iran.