EU regulators to fine KLM on cargo prices -paper

AMSTERDAM, March 6 (Reuters) - The freight division of KLM Royal Dutch Airlines, the Dutch arm of Air France KLM AIRF.PA, is facing steep fines over price fixing in the air-cargo market, Dutch newspaper Telegraaf reported on Tuesday.

In February 2006, U.S. and European officials raided airlines on both sides of the Atlantic to investigate possible price fixing of freight shipments by airlines. They were looking into fuel surcharges by the airlines.

The Telegraaf, citing unannmed sources, said that KLM’s freight division was facing steep EU fines for price fixing, and that Michael Wisbrun, the Dutch director of freight, may be replaced.

“We have given all information requested and are still waiting on the outcome,” a KLM spokesman said, “We have no indication of when or what the decision will be.”

A spokesman for the European Commission in Brussels declined comment.

During its investigation last year, the Commission said: “The Commission has reason to believe that the companies concerned may have violated (a European Union) treaty, which prohibits practices such as price fixing.”

British Airways Plc BAY.L, Air France-KLM and freight airline Cargolux [CLUX.UL] said they were asked for information related to alleged cartel activity. German carrier Lufthansa LHAG.DE also said it would cooperate with the probe.