SASÆs future uncertain as shippers threaten suits over price fixing
Scandinavian airline SAS is being sued by several major Swedish companies for losses resulting from price fixing on air freight services, Reuters reported over the weekend.
Citing Swedish television news reports from Friday, the report said furniture chain IKEA and clothing retailer Hennes & Mauritz were among the companies who had launched lawsuits against SAS.
The price fixing scheme was uncovered after European and U.S. authorities carried out dawn raids at airlines on both sides of the Atlantic in early 2006.
In June SAS admitted its cargo subsidiary had violated U.S. competition laws and agreed with the U.S. Justice Department to pay a $52 million fine, the Reuters story said.
A separate European investigation, with which SAS has said it is cooperating fully, is still underway.
'The Scandinavian airline has warned the verdict by the European Commission, expected later this year, could have a 'substantial' negative impact on the airline which is already struggling to return to profitability in the face of soaring fuel costs and stiff competition from low-cost rivals,' the report said.