An Australian litigator is warning fresh produce companies that use airfreight that they could be in line to claim repayment on alleged illegal price-fixing activity by 16 of the world’s major airlines, including British Airways, Air France, KLM, Martinair, Cargolux, SAS, Qantas and El Al.
Peter Koutsoukis, managing director of Claims Funding International (CFI), estimates that any sector that uses airfreight will have been affected by an alleged price-fixing cartel that operated between 2000 and 2007. His firm funds and supervises claims for damages for the victims of such activity.
Enquiries in Australia, the US and Canada have already registered guilty pleas from the 16 and now a long-awaited ruling from the European Commission’s competition directorate-general is expected before the terms of office of the incumbent commissioner Neelie Kroes expires in October.
Koutsoukis said: “Once the EU’s determination has been announced and liability for claims is established, any company that spent significant amounts - CFI recommends at least £1 million or €1m (£854,300) to make it economically viable - on international airfreight in the cartel period can claim. There are already a number of businesses who have been affected by this and are speaking to CFI on how best to claim back.”
According to CFI, major airlines such as British Airways and Air France have already made provision for a payback. Koutsoukis said: “In its latest accounts, BA has set aside £350m to refund claimants and pay fines and Air France has set aside €550m.”
The lawyer warned that among the companies hardest hit are those trading in cut flowers and high-value, airfreighted fresh produce lines. But he urged the sector not to over-estimate the surcharges imposed during the alleged price-fixing period.
He said: “We think the overcharge is only about 10 per cent. We will have to prove that there was a true overcharge, but airlines will argue that on fuel, the wholesale price during the period increased dramatically, as did war risk because of the invasion of Iraq in 2003, as did security charges after September 11, 2001. All of these factors will be subject to economic analysis… But one airline, Lufthansa, which blew the whistle and so triggered the US investigation, settled for about eight per cent, including its discount as a whistleblower. That is why we think the overcharge was not more than about 10 per cent.”
Koutsoukis is urging any company which has incurred £1m or €1m on airfreight on its EU ledger during the period to get in touch.
