Source: AFP Author: 06/27/2008
Subject Concerned: Government Airlines Cargo
Several airlines, including Cathay Pacific and Air France-KLM, have agreed to pay criminal fines amounting to US$504 million (HK$3.93 billion) to settle US charges over a conspiracy to fix cargo rates.
The US Justice Department said the airlines, which included the SAS Cargo Group and Martinair Holland, agreed to plead guilty to the US charges tied to a multi-year conspiracy.
"This price-fixing conspiracy undermines our economy and harms the American people who, due to lack of true competition in this area, end up footing the bill," said Kevin O'Connor, an associate attorney general.
Air France-KLM agreed to pay US$350 million, the second-highest ever fine applied in a US criminal anti-trust investigation.
Cathay Pacific agreed to pay US$60 million, while Martinair will pay US$42 million and SAS will pay US$52 million.
The US Justice Department investigators said the airlines conspired to "suppress and eliminate" competition by fixing cargo freight rates.
The conspiracy affected billions of dollars of consumer and other goods shipped by the airlines, including produce, electronics and medicines, according to US investigators.