Thai Airways International PCL (THAI.TH) said Wednesday that the European Commission has decided to drop its charges against the airline in an air cargo cartel case and that it isn't subject to any fine.

Thai Airways has set aside a provision of THB4.29 billion (US$145 million) since 2008 for any potential penalty related to the cartel allegations, it said in a statement.

A Commission official in Bangkok confirmed Thai Airways' statement.

The news came after 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.

-By Bangkok bureau, Dow Jones Newswires; 66 2690 4200; djnews.bangkok@dowjones.com