Inter-island air transport in the Caribbean: the Autorité de la concurrence sanctions anticompetitive agreements between the airlines Air Antilles and Air Caraïbes

Following an investigation opened at the initiative of the General Rapporteur and a series of dawn raids, the Autorité de la concurrence has imposed fines of €14,570,000 on two airlines operating in the inter-island passenger air transport sector in the Caribbean, as well as a consulting firm specialising in the airline sector, for colluding on prices and services (slots and frequency).

The routes concerned are between Pointe-à-Pitre and Fort-de-France and between those two cities and Saint Martin, Saint Lucia and Santo Domingo.

Anticompetitive agreements on ticket prices and service levels

Between 2015 and 2019, Compagnie Aérienne Inter Régionale Express (CAIRE, operating under the trade name Air Antilles), Air Caraïbes and Miles Plus (a consulting firm operating under the name Aérogestion) implemented four agreements enabling Air Antilles and Air Caraïbes to introduce significant fare increases and reduce services while preserving their respective market shares.

The companies concerned agreed on ticket prices and fare conditions. At the same time, the airlines coordinated to reduce their service offerings and share slots.

€14,570,000 in fines

Air Caraïbes and Miles Plus (Aérogestion) applied to the Autorité for the benefit of the settlement procedure. Their fines have been set at €13,000,000 and €70,000, respectively.

Taking into account the ability of Air Antilles (CAIRE) and its parent company, Guyane Aéroinvest, to pay, the Autorité decided, in line with its established practice, not to impose any fines on them. However, a fine of €1,500,000 has been imposed on their parent company, K Finance, based on the principle of joint liability.