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BA Brings 32 Other Airlines Into Its London Air Cargo Litigation
BA BRINGS 32 OTHER AIRLINES INTO ITS LONDON AIR CARGO LITIGATION
Hausfeld & Co LLP can confirm that British Airways plc (“BA”) has brought 32 other airlines into proceedings it faces in the High Court in London with respect to the air cargo cartel. These airlines include Air France, KLM, Cathay Pacific, Cargolux, Qantas, Emirates, SAS, Singapore, and South African.
The proceedings relate to an action brought against BA by two flower importers on a representative basis in the English High Court by Hausfeld & Co LLP. The action is backed by a growing group of other shippers, and other shipper actions are also pending in Australia, Canada, New Zealand and South Korea.
The purpose of this development is for BA to protect itself against any payments it is compelled to make as a result of the London action. As a cartelist, BA is responsible for all of the loss suffered by victims of the air freight cartel – whether from purchases from BA or from other airlines. With this move BA is hoping to recover contributions for payments it is compelled to make from other airlines.
The claims arise out of a global cartel in international air freight services which is believed to have occurred between January 2000 and late 2006. BA and other airlines have pleaded guilty to price fixing to regulatory authorities in the US, Australia and Canada and were recently fined by the regulatory authority in South Korea.
Air France-KLM recently announced a US$87 million settlement of its US liabilities arising from the cartel; this settlement followed an earlier US$85 million settlement reached by Lufthansa.
Anthony Maton of Hausfeld & Co. LLP comments:
“We hope that this will be a positive move in that it will encourage airlines to recognize their European liability to shippers and to start the process of making sensible commercial settlements.”
A full list of the 32 airlines brought into the proceedings is: Air Canada, Societe Air France, KLM NV, Air New Zealand Limited, All Nippon Airways Co. Limited, American Airlines Inc., Cargolux Airlines International SA, Cathay Pacific Airways Limited, Japan Airlines International Co. Limited, Korean Airlines Co. Limited, Lufthansa Cargo AG, Deutsche Lufthansa AG, Martinair Holland NV, Qantas Airways Limited, Singapore Airlines Cargo PTE Ltd., Singapore Airlines Limited, South African Airways (Proprietary) Limited, Thai Airways International Public Company Limited, United Air Lines Inc., Swiss International Air Lines AG, Scandinavian Airline System Denmark-Norway-Sweden, Air France-KLM, Scandinavian Airline System AB, Aviainform GmbH, Scandinavian Airline System Cargo Group A/S, AMR Corporation, Emirates, Japan Airlines Corporation, LAN Cargo SA, LAN Airlines SA, Malaysia Airlines Cargo SDN. BHD., Malaysian Airline System Berhad, Nippon Cargo Airlines Co. Limited, UAL Corporation.
Hausfeld has signed a formal co-operation agreement with Claims Funding international (“CFI”) to co-ordinate the pursuit of claims for shippers within the EU. Between them Hausfeld and CFI separately represent some US$5 to 6 billion of combined air cargo traffic purchased by shippers in the cartel period located on multiple continents, including several among the Fortune Global 500 and Forbes Global 2000, as well as both the Business Week and Interbrand 100 Best Global Brand. These companies have claims for compensation in Europe resulting from the loss they suffered as a result of the actions of the cartel.
The European Commission has still not delivered a decision on the cartel despite having investigated it since December 2007.
Contacts: Anthony Maton 020 7665 5000
Scott Campbell 020 7665 5000
Michael Hausfeld +1 202 540 7200
NOTES TO EDITORS
About Hausfeld & Co LLP and Hausfeld LLP
Hausfeld & Co LLP, led by industry doyen Michael Hausfeld, is widely recognised as one of the leading and best-known claimant law firms in the world. It is at the forefront of numerous innovative legal actions that are expanding the quality and availability of legal recourse for aggrieved individuals and businesses around the world.
The partners of Hausfeld LLP have obtained numerous landmark judgments and settlements for individuals and businesses, and have been champions for the private enforcement of competition and antitrust laws globally for almost four decades.
For further information please visit: www.hausfeldllp.com
Practice Areas: Antitrust / Competition