South Korean regulator Fair Trade Commission has warned Air India and Scandinavian Airlines against indulging in unfair trade practices, and slapped a fine of nearly USD 100 million on 19 other international carriers.
"The Commission found that the 21 airlines had conspired to introduce fuel surcharges and continue to raise surcharge rates for air cargo to-and-from Korea between 1999 and 2007," the regulator said in a statement on Friday.
FTC has imposed a total fine of 119,544 million won (nearly USD 100 million) on 19 airlines and told two others, including Air India, for violating the Monopoly Regulation and Fair Trade Act.
Air India officials were unavailable for comments.
Air France, Air France-KLM, Air Hong Kong, Singapore Airlines, All Nippon Airways, Asianan Airlines, British Airways, Cathay Pacific Airways, KLM and Japan Airlines International, were among the 19 airlines fined by the FTC.
The other entities penalised were Korean Airlines, Lufthansa Cargo, Malaysian Airline, Nippon Cargo Airlines, Polar Air Cargo, Qantas Airways, Swiss International Airlines, Cargolux Airlines International and Thai Airways
International.
In its probe, the regulator found that the cartel conspiracy on shipments to four routes, outbound shipments from Korea, and inbound shipments to Korea from Hong Kong, Europe and Japan, had seriously affected the South Korean
market.
FTC had begun investigating the issue through unannounced inspections in February 2006.