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17
March
2017

European Commission’s decision on cartel practices

Summary

The European Commission announced that it would fine eleven airlines, including KLM, Air France and Martinair, for practices in the air cargo sector that are considered anti-competitive and relate mainly to the period between December 1999 and February 2006. The fine for KLM amounts to EUR 127 million.

This new decision is connected with a fine previously imposed by the European Commission on 9 November 2010. The previous fine, issued to the same airlines for the same reason, was later annulled by the General Court of the European Union, because there were “contradictions” in the European Commission’s argumentation. The fines imposed on the other airlines were also annulled at that time.

In total, the fines imposed on the Air France-KLM Group amount to EUR 325 million. This figure is slightly lower than the initial fine imposed in 2010, mainly because the fine for Martinair was lower due to technical reasons. The European Commission’s decision partly covers the period prior to the merger between Air France and KLM. The total fine imposed on the Air France-KLM Group is the sum of the individual fines imposed on Air France, KLM and Martinair.

Air France-KLM is currently analysing this new decision and considering its options for response. These fines have been fully covered in the Group’s financial accounts since 2010.

KLM confirms its commitment to strict compliance with competition rules and fully acknowledges the importance of a level playing field for airlines. Throughout the investigation, KLM has engaged in full and open cooperation with the authorities.