An Israeli antitrust organization has sued four airlines for price-fixing, filing the suit in Central District Court and requesting that the case be considered a class action.
The air cargo class action alleges that the defendants unlawfully conspired to fix, maintain and coordinate price increases for air cargo surcharges including fuel surcharges. Surcharges are charged by major airlines that deliver cargo via air on behalf of customers. Surcharges are extra fees charged by airlines to their shipping customers above and beyond basic freight charges typically priced by weight or volume, with the intent of defraying certain external costs of the carriers.
The class action lawsuit was brought by the Hatzlaha Consumer Movement for Promoting a Fair Social Economy. Hatzlaha Consumer Movement filed the case against El Al Israel Airlines, British Airways plc, Lufthansa AG and Swiss International Air Lines for about US$166 million.
According to the suit, the price-fixing occurred between 2000 and 2006 and raised prices for extra fuel and security.
The U.S. Department of Justice has been investigating price fixing allegations throughout the industry for several years. Since the price fixing scheme was discovered by untitrust agencies in the USA, EU and FAR EAST , the participating airlines have been in court proceedings, but to date no claim has been filed in Israel in the matter.
Hatzlaha filed the lawsuit just before the statute of limitations would come into effect.
