Lufthansa will assist air cargo antitrust probe

Lufthansa will assist air cargo antitrust probe    Lufthansa, the German airline, has offered to cooperate with U.S. prosecutors who are investigating alleged price-fixing in the air cargo industry.
   The offer could give Lufthansa immunity from criminal charges if it testifies against other carriers.
   More than a dozen private antitrust suits have been filed in the United States since a series of raids Feb. 14 by federal agents on the offices of major airlines. A federal grand jury in Washington, D.C., has begun to hear evidence, an indication that the U.S. Justice Department may seek criminal charges against some airlines and their executives.
   One of the civil suits, filed by Niagara Frontier Distribution Inc., an air-freight shipper in Lockport, N.Y., alleges that Niagara Frontier was overcharged by nine airlines, all named in the suit, from January, 2001, until now. The suit also names the International Air Transport Association (IATA) as a defendant.
   Niagara Frontier alleges that surcharges common through the $60 billion air cargo industry have risen inexorably and by the same amounts, no matter which airline is used.
   The surcharges in question are intended to recover high fuel costs. Niagara Frontier's lawsuit alleges that the surcharges persist even when fuel prices fall back.
   In 2000, air carriers asked U.S. regulators for permission to impose surcharges on air cargo rates. The request was rejected on grounds that it was basically flawed and unfair to shippers. The government said the airlines had improperly based the surcharges on spot-fuel prices, which fluctuate. Most carriers flatten fuel cost spikes via hedging, in the context of long-term contracts.
   IATA itself has been coy about its role. The Geneva-based Association has denied any involvement in setting air cargo fuel surcharges, but advises its carrier members to implement their surcharges 'in the unilateral exercise of ' individual business judgment.'
   Federal subpoenas or requests for information have gone out to Lufthansa, British Airways, Air France-KLM, Scandinavian Airlines System, Japan Airlines, AMR Corp.'s American Airlines, and United Airlines, a division of UAL Corp.