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Interest can be interesting: General Court orders Commission to pay millions in interest to Air Canada

26/03/26

On 9 November 2010 the Commission adopted Decision C(2010) 7694 in relation to 21 airlines including Air Canda. It found, in essence, that there had been unlawful price fixing in relation to air cargo pricing. It fined Air Canada over € 21 million.

On 16 December 2015 the General Court quashed that decision as it applied to Air Canada in Judgment T-9/11 Air Canada v Commission. Following the judgment, on 8 February 2016 the Commission repaid Air Canada the € 21 million penalty plus € 469,540 in interest.

On 4 February 2021 Air Canada wrote to the Commission seeking the difference between the interest that it said it should have been paid, calculated on the default interest rate (at 4.5%), and the interest that had been paid in 2016. The interest paid in 2016 had reflected the interest that the Commission had actually earned on the € 21 million while it held the sums.

The Commission refused to pay and Air Canada challenged that decision. It sought:

€ 4.3 million: the difference between the sum paid and the sum owing in standard interest up to 8 February 2016;
Nearly € 1 million in interest on that sum between 9 February 2016 and the date of its letter on 4 February 2021; and
Further interest between 4 February 2021 and judgment.

The Commission argued that the law, as understood at the time the fine was returned, had not yet established that a party in Air Canada’s position was entitled to standard interest. It also argued that any error was not a sufficiently serious breach of EU Law.

The General Court handed down judgment on 25 March 2026. It rejected both the Commission’s arguments and awarded Air Canada:

€ 4.3 million for the period up to 4 February 2021; and
Interest on that sum running from 5 February 2021 until payment.

However, the Court declined to award interest for the period between the repayment of the fine in 2016 and Air Canada’s letter in 2021, because any delay in that period was attributable to Air Canada.

The Judgment can be found here.

Tim Johnston acted for Air Canada instructed by Zena Prodromou and Trevor Soames, both originally of Quinn Emmanuel LLP but now at Milberg London LLP and Gerardin Partners respectively

All members of Brick Court Chambers are self employed barristers. Any views expressed are those of the individual barristers and not of Brick Court Chambers as a whole.