Commission raids BA in anti-trust inquiry

European Union anti-trust officials yesterday raided the offices of British Airways, Lufthansa, Air France-KLM, Cargolux and …

European Union anti-trust officials yesterday raided the offices of British Airways, Lufthansa, Air France-KLM, Cargolux and several other air cargo companies as part of a worldwide cartel probe.

The European Commission said its officials had "carried out unannounced inspections at the premises of several air cargo carriers in several EU member states".

The Brussels-based regulator added that it had "reason to believe that the companies concerned may have violated" European rules that prohibit price-fixing agreements and other cartel abuses.

The US department of justice said it was also investigating the industry.

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"I can confirm that the antitrust division is investigating the possibility of anti-competitive practices in the air cargo industry. We are co-ordinating with the EU and other foreign competition authorities," a department spokeswoman said.

The commission never reveals the names of the companies it has raided but several groups said they had either been raided or had received "requests for information".

British Airways said it had received information requests from the commission and the US department of justice, while Lufthansa confirmed there was a cartel investigation.

Cargolux, the Luxembourg-based group, and Air France-KLM, Europe's biggest airline, also confirmed they were part of the investigation.

The targeted groups could face financial penalties if they are found guilty of operating a price-fixing or market-sharing cartel.

The commission has the right to impose fines worth up to 10 per cent of global annual turnover.