Reply #117: It appears that only *Co can blame everything on 9/11 [View All]

[UpInArms]

Airlines accused of using 9/11 as excuse to overcharge for freight

Airlines around the world have been accused of using the September 11 terrorist attacks as a pretext for overcharging cargo customers by imposing unnecessary surcharges to cover "security" costs.

The Office of Fair Trading confirmed yesterday that its staff in London were assisting the European commission and the US department of justice in a price-fixing investigation into major carriers. Competition authorities as far afield as Canada and South Korea are also taking part.

Virgin Atlantic revealed that it had received a request for information about its cargo operation. Its involvement came a day after raids took place on British Airways' offices in London and New York.

Details of the allegations have begun to trickle out. The Scandinavian airline SAS disclosed that the inquiry revolves around levies imposed on cargo by dozens of airlines around the world, which were attributed to the soaring cost of fuel and of clearing stringent security hurdles, particularly of the sort introduced by the US government.

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In the wake of September 11, BA joined other carriers in introducing an "exceptional handling charge" of 9p a kilogram of freight, which was justified by the need for greater security. It has added a fuel levy that is linked to oil prices through a sliding scale and which currently stands at 34p a kilogram. Both measures have become common in the industry.

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