The European Commission Tuesday fined 11 airlines a total of EUR799 million for forming a global cartel to fix air-freight tariffs, mainly fuel surcharges, ending an investigation that dragged on for years with the fourth-largest fine in a cartel case.

Air France KLM SA (AF.FR) received the biggest fine with EUR340 million, including the three different airlines that are now part of the group --Air France, KLM and Netherlands-based Martinair. British Airways PLC (BAY.LN) was fined EUR104 million.

Many countries around the world, from South Africa to New Zealand, have been investigating issues related to price fixing in air cargo. In the U.S., total fines of more than $1.5 billion were levied against airlines that acknowledged fixing fuel surcharges, and eighteen airlines have been charged.

According to the commission, the European Union's antitrust body, the airlines colluded on some surcharges between December 1999 and February 2006, when the investigation --which initially targeted more than 20 companies-- started with unannounced raids at the companies' headquarters.

Initially, "the carriers contacted each other so as to ensure that worldwide airfreight carriers imposed a flat rate surcharge per kilo for all shipments," the commission said in a statement. "The cartel members extended their cooperation by introducing a security surcharge and refusing to pay a commission on surcharges to their clients," it said.

Other airlines fined include Singapore Airlines Ltd. (C6L.SG), fined EUR74.8 million, Qantas Airways Ltd. (QAN.AU) with EUR8.8 million, Cathay Pacific Airways Ltd. (0293.HK), with EUR57.1 million and Japan Airlines International Co., fined EUR35.7 million.

The EU also fined Scandinavian airline SAS AB (SAS.SK) EUR70.2 million, LAN Chile (LAN.SN) EUR8.2 million, Luxembourg-based Cargolux EUR79.9 million and Air Canada (AC.B.T) EUR21 million.

Deutsche Lufthansa AG (LHA.XE) wasn't fined because it acted as a whistle-blower in the case, the commission said.

The commission can fine the companies up to 10% of their annual global revenue.

The EU didn't fine any U.S. company because it didn't find enough evidence to do so, European Competition Commissioner Joaquin Almunia said during a press conference to announce the decision.

Some companies, including British Airways and Cargolux, have been putting money aside because of the prospect of a fine.

British Airways said Tuesday that the fine falls within its provision. The company said in May 2007 that it had provisioned GBP350 million for fines in the U.S. and EU, while Air France-KLM provisioned EUR530 million for fines in different regions.

SAS, which didn't make any provision, said Tuesday that it will appeal the commission's decision, calling the fines disproportionate, while Cargolux said the fines seems "a very harsh punishment indeed," when added to others due to other antitrust authorities.

-By Alessandro Torello, Dow Jones Newswires; +32 2 741 14 88; alessandro.torello@dowjones.com (Frances Robinson and Daniel Michaels in Brussels, Ian Edmonson in Stockholm and Jonathan Buck in London contributed to this article.)