Santiago de Chile, November 9th, 2010.
LANCARGO reports that the European Commission announced today its decision relative to the global investigation that began in 2006, and was carried out jointly with U.S. authorities, in relation to the infringement of antitrust regulations of the European Union. The European Commission reported the imposition of fines to a total of 11 air carriers for a total amount of €800 million (equivalent to approximately US$1.1 billion).
In the case of LANCARGO and its parent company LAN Airlines, the amount of the fine imposed is € 8.2 million (equivalent to approximately US$ 11.5 million), amount which has been provisioned by the Company. This was the lowest fine applied by the European Commission, which includes a significant reduction due to the Company’s cooperation with the Commission during the course of the investigation.
In December of 2007, LANCARGO reported to the Chilean regulators the beginning of the global investigation in Europe, which covers the period between February 25, 2003 and February 14, 2006. It should be noted that the investigation only affected air cargo activity and did not involve in any way the passenger business.
In accordance with European Union law, this administrative decision is appealable to the General Court in Luxembourg. Any judgment by the General Court may also be appealed to the Court of Justice of the European Union. LAN is evaluating its legal options, including the right to appeal this decision within the established deadlines.
The Company has continuously cooperated with the authorities in charge of the global investigation. In its ongoing commitment to good corporate governance and transparency in business practices, LAN further strengthened its monitoring mechanisms through the implementation of a strict compliance program of all applicable rules and regulations where it operates. The Company also launched a new code of conduct applicable to employees worldwide.