DB successfully recovers damages in Air Freight Cartel

Deutsche Bahn (DB) has successfully enforced its claims for damages against several air freight carriers. DB’s subsidiary, DB Barnsdale AG, and Cathay Pacific have reached an agreement relating to the civil proceedings concerning the air freight cartel determined by the European Commission. This marks the end of the dispute at the Regional Court of Cologne that has lasted more than a decade. Following the settlement, this procedure is finally closed, since Cathay Pacific was the last remaining defendant in this case. The parties to the settlement have agreed to keep the details of the settlement as well as the settlement amount confidential.

Martin Seiler, DB Board Member for Human Resources and Legal Affairs: ”Our competition litigation experts have battled to secure over 65 settlements and recovered nearly 700 Million Euros in damages in the last few years – this marks a victory for justice and fair competition. I am pleased that this long-running legal process regarding the air freight cartel has now been successfully concluded.“

The European Commission imposed – along with other international competition authorities – high levels of fines against eleven air freight carriers (Air Canada, Air France-KLM, British Airways, Cathay Pacific, Cargolux, Japan Airlines, LAN Chile, Martinair, SAS, Singapore Airlines and Qantas) due to global competition law infringements concerning fuel and security surcharges.  The European Commission’s decision is currently under appeal at the Court of Justice of the European Union.

Since 2013, DB Barnsdale has pursued damages on behalf of DB Schenker, other freight forwards and shippers, who assigned their claims to DB Barnsdale, at the Regional Court of Cologne. Prior to the agreement with Cathay Pacific, DB Barnsdale had already concluded out-of-court settlements with other air freight carriers. A final judgment from the German courts in the matter was not to be expected in the near future.