Airline Industry - Airline cartel including Air France, KLM, Martin Air faces huge EU damages claim - by Nikki Tait and Jane Croft

The largest European claim for damages resulting from cartel behaviour will be launched on Thursday when a writ is served on KLM and Air France.

A group of companies led by Philips of the Netherlands and Ericsson of Sweden will allege they have suffered more than €400m ($545m) of damage as a result of price-fixing by KLM, Martinair and Air France. Lawyers advising the companies, however, say the total sum is likely to top €500m once interest is included.

International competition watchdogs have been investigating a worldwide cartel, based around air freight traffic rates for the past four years. In countries such as South Korea, Australia, Canada and the US, almost two dozen airlines – including KLM, Air France and Martinair – have admitted involvement in illegal activities going back to 2000 and faced substantial financial penalties as a result. Air France and KLM merged in 2004, but retain separate legal identities.

For more: FT.com / Companies / Airlines - Airline cartel faces huge EU damages claim

EU-Digest: Airlines scamming passengers on fuel surcharges: Surcharges paying the bulk of airline fuel bills

http//www.eu-digest.com

Airlines scamming passengers on fuel surcharges: Surcharges paying the bulk of airline fuel bills

The cost of jet fuel for a transatlantic flight on British Airways can now be paid by the airline company almost completely by surcharges that are levied on passengers, according to a recent report. Beginning in May, BA added fuel surcharges to its ticket prices, with passengers paying from euro 100 to 130 additional on long-haul services of less than nine hours’ duration. These charges bring in euro 14.000 to the carrier on a 224-seat Boeing 777 London-New York flight. The same is true for flights on Virgin Atlantic. For some time, airlines have complained about the cost of fuel. Manufacturer testing shows that a Boeing 777 carrying 305 passengers typically requires 44 tons of fuel on a London-New York run. The estimate includes cargo and luggage in the calculation. At current oil prices of euro 600.85 a ton, the cost to the carrier would be euro 15.021.00, which would be nearly covered by fuel surcharges. Only very few airline companies reduced the fuel charges as fuel cost dropped dramatically during the past two months.

Many other airlines including KLM/Airfrance are involved in this "extra fuel surcharges" scam and several consumer organizations are not only looking into these charges, but are also planning to take legal action. In the meantime the European Parliament has been requested by representatives of European political parties to look into the matter. It was disclosed on Dutch TV this evening that there is also no transparency as to how these surcharges are calculated by the airline companies.