European Airlines Say They're Cooperating in Probe

Feb. 14, 2006
The European Commission carried out surprise inspections at several major European airlines, including British Airways and Air France, as part of an investigation into possible price fixing.

The European Commission carried out surprise inspections at several major European airlines, including British Airways and Air France, on Tuesday as part of an investigation into possible price fixing in the air cargo industry.

British Airways, Air France, KLM, Lufthansa and Luxembourg's Cargolux Airlines all confirmed they were cooperating with authorities investigating the pricing practices in the industry.

In a brief statement to the London Stock Exchange, British Airways PLC said it had received a request for information from both the European Commission and the U.S. Department of Justice and was assisting in the probe.

Justice Department spokeswoman Gina Talamona said that U.S. investigators are working with the EU and other authorities to investigate possible "anti-competitive behavior."

Patrick Jeanne, a spokesman for cargo airline Cargolux Airlines International SA, said the carrier had been visited Tuesday by EU inspectors.

KLM spokesman Hugo Baas confirmed KLM is included in the probe and that investigators were at the company today. He said KLM is extending "full cooperation, and we have all the faith in the outcome of the investigation."

Lufthansa AG and Air France issued similar statements pledging cooperation. KLM and Air France are part of Air France-KLM Group.

The EC said surprise inspections are a preliminary step in investigations into suspected cartels.

"The fact that the European Commission carries out such inspections does not mean that the companies are guilty of anti-competitive behavior nor does it prejudge the outcome of the investigation itself," it said in a statement.

It provided no further detail of what was being examined and put no time frame on the completion of its investigation.

BA said its policy is "to conduct its business in full compliance with all the applicable competition laws."

The airline said it had no immediate comment beyond its statement.

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