The Brazilian Competition Authority fines air cargo carriers for price fixing, highlighting the importance of leniency program in the fight against cartels (Absa Aerolineas Brasileiras)

Introduction CADE’s Tribunal condemned airlines ABSA Aerolineas Brasileiras S.A., Varig Logistica SA, American Airlines Inc., and Alitalia Linee Aeree Italiane S.P.A., plus seven individuals, for cartel formation in the international air cargo sector. The fines sum approximately 300 million Brazilian Reais (around 95 million Euros). The four airlines and the employees involved were condemned for fixing the price and the date for application of additional fuel charge in international air cargo in Brazil. Considering there was no evidence to prove their participation in the cartel, United Airlines Inc. and an individual connected to the company were acquitted by the Tribunal. The case highlights the importance of the Brazilian Leniency Program. As it enabled the full protection of the