Cathay Pacific Appeals European Union Cargo Fine Ruling

On Tuesday, Cathay Pacific announced that they have filed an appeal against the £57.1 million fine imposed by the European Commission for the carrier being involved in cargo price fixing. The ruling was made in November last year, when 10 other airlines were found guilty of conspiring on prices charged to companies for the transport of cargo from December 1999 to February 2006.

When the decision was announced by the European Commission in November, they said that, when determining the amount each carrier would be fined, they took into account the sales of the companies involved, the EEA-wide scope of the illegal cartel, the serious nature of the infringement, as well as how long it went on. British Airways and Air France were 2 of the other airlines involved in the cartel, and they were fined a total of €800 for it.

In the statement from Cathay Pacific, the carrier said that the appeal was filed with the General Court of the European Union. It follows an appeal filed in the Seoul High Court in December, which challenged a similar decision by the Korean Fair Trade Commission, they continued. An airline spokesperson also explained that they believe they have good grounds to make the appeals, but they aren’t in a position to provide any further information at this time while the matters are being litigated.

Meanwhile, Cathay Pacific has managed to avoid a strike by cabin crew during the Lunar New Year, which is China’s busiest holiday travel period. The Cathay Pacific Airways Flight Attendants’ Union is halting the action as a goodwill gesture in the hope of resuming negotiations with the carrier about 2011 salaries.