Airlines Settle Class-Action Cargo Lawsuit

United Airlines and American Airlines have settled a class-action lawsuit filed after an investigation began into price-fixing among international cargo carriers. Unlike Lufthansa, it seems United and American have also avoided any monetary obligation in their settlements.

US and European Union officials are engaged in a continuing investigation of more than a dozen cargo airlines. They are researching accusations of collusion between the carriers on surcharges for fuel, security and insurance.

The class-action suit developed as a direct result of the criminal investigation. As ANN reported, Lufthansa AG, a German cargo carrier, paid a whopping $85 million to be released from further obligation in the suit.

Specific details of United's and American's settlements haven't been disclosed, but we do know that they will pay nothing, and won't have to change their cargo pricing policies.

United's spokesman Brandon Borrman told the Associated Press, "We are pleased to have reached an agreement with a majority of plaintiffs that will see us dismissed from the civil litigation, pending court approval."

Tim Smith, a spokesman for American said, "We do have a settlement with some of the plaintiffs, subject to court approval. It requires no payment at all by American, and we have been told we are not a target of the investigation."

Smith says he believes American Airlines was swept up in an investigation focused mainly on European carriers. And this washes with earlier reports that the surcharges in question originated in Europe with North American carriers only reacting to the competition.

Both United and American hope this ends their involvement in the suit. Their settlements will stand unless the Department of Justice (DOJ) files criminal charges -- which would require the DOJ to show the pair was actively conspiring instead of reacting to market changes.

A report in the Financial Times said Virgin Atlantic Airways has also reached a settlement, but wouldn't respond to requests for comment.

FMI: www.aa.com, www.united.com