GCTL8.com (FocusAsia Media Ltd)

Cathay and Dragonair

HONG KONG, Mar 20 (FAM) – The European Commission has slapped a 57.12 million (HK$476 million) fine on Cathay Pacific Airways, reinstating a penalty that was overturned seven years ago, accusing the airline for breaching Europe’s competition law with its cargo surcharges, the Hong Kong airline said.

Cathay shares fell as much as 1.6 per cent to HK$11.1 on Monday morning, one of the worst drops in a month, after revealing the fine at Hong Kong Exchange on Sunday afternoon.

European Commission is one of the agencies that has undertaken the investigation regarding Cathay’s cargo operations seven years ago.