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03.12.2024 | 🇫🇷 French competition authority
The Autorité de la concurrence has imposed significant fines totaling €14,570,000 on two airlines, Air Antilles and Air Caraïbes, along with a consulting firm, Miles Plus, for engaging in anticompetitive agreements in the Caribbean's inter-island air transport sector. The investigation revealed that these companies colluded on pricing and service levels between 2015 and 2019, affecting routes between Pointe-à-Pitre, Fort-de-France, Saint Martin, Saint Lucia, and Santo Domingo.
During the investigation, it was found that Air Antilles and Air Caraïbes entered into multiple agreements that allowed them to raise ticket prices significantly while simultaneously reducing their service offerings. This included coordinated discussions on fare conditions and a “non-aggression agreement” that prevented either airline from undercutting the other, effectively maintaining high prices and limiting competition.
The fines were distributed as follows: Air Caraïbes was fined €13,000,000, Miles Plus received a €70,000 fine, and Air Antilles' parent company, K Finance, was fined €1,500,000 due to its joint liability. Notably, Air Antilles and its parent company were not fined due to their inability to pay, as they are undergoing liquidation proceedings.
The Autorité highlighted the severity of the airlines' actions, particularly given their duopoly status in the region, where air travel is essential for local residents. The collusion not only impacted local customers but also affected the tourism appeal and economic attractiveness of the Caribbean territories involved. The airlines even coordinated fare increases during Hurricane Irma, taking advantage of a vulnerable customer base.
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