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Journal blasts prosecutors, backs jailed execs, lauds NZ Air, Emirates

Sep 8, 2009 Logistics

NEW YORK's Air Cargo News has taken up the cause of jailed air freight executives who were left "twisting in the wind" by employers after "Beltway prosecutors" built their "reputations at air cargo's expense" by generating a "Salem witch trial" atmosphere.

"Anybody who doesn't think law enforcement is not out of control is not paying attention," said the Air Cargo News editorial.

The journal praised Emirates and Air New Zealand's apparent determination to fight the latest prosecutorial attack against alleged air freight price fixing, which in previous cases have landed executives in jail and turned one in the a fugitive in Europe.

In an interview with recently released Timothy Pfeil (pronounced "file"), much praise was accorded his new employer and the air cargo industry for welcoming him back with a good job after six months in US Federal Prison.

But Mr Pfeil could not say much. "These days I am extremely careful about saying anything that could in any way cause a problem for US Department of Justice [DOJ]," he said. "I do not ever want to go back to Federal Prison."

Mr Pfeil, formerly SAS Cargo Americas sales chief in Newark, was told by his boss to destroy documents relating to the collusion charges to which the airline pleaded guilty last year.

Mr Pfeil told a court that his boss, global sales chief and company vice president Jan Lillieborg ordered him to destroy documents the same day Danish competition agents raided the company's Copenhagen Kastrup Airport offices.

Today, Mr Pfeil is vice president of sales and at Platinum Cargo, while his old boss, Mr Lillieborg, has been indicted in US, fired from his new job at Green Cargo in Sweden, and is on the run in Europe with Interpol on his trail.

Mr Pfeil is delighted with his reception on this release. "Platinum stood behind me 150 per cent," he said. "I am humbled by the graciousness that the air cargo community, especially at JFK has shown in welcoming me back. I am proud to be part of this great industry."

Ex-Qantas Americas sales chief Bruce McCaffrey, 69, said he never thought twice about the charges that DOJ threw at him, figuring that Qantas would handle them as he had never done anything without approval of his bosses in Australia.

"But when that did not happen and he was faced with defending himself as Qantas left him twisting in the wind, he copped a plea," said Air Cargo News.

"But Tim is out there, doing business because some of us will stand up for each other, as confirmation to all of us, that life goes on and all things pass," said the report.

Cheering on Emirates and Air New Zealand's response to Australian and New Zealand charges, the report said: "The New Zealand Commerce Commission, (NZCC) investigated ANZ and other airlines including Emirates a year ago against similar claims that they were involved in a cargo cartel between 2002 and 2006 and decided not to proceed. So maybe Emirates will be the watershed moment in the price-fix circus that so far has milked millions and clobbered hapless employees in air cargo."

Speaking to the New Zealand Press Association, Air NZ said: "Our own thorough review of the documents shows that Air New Zealand acted appropriately in all our discussions and communications."

In September 2003, Air NZ was beginning the introduction of A320 aircraft onto the trans-Tasman route, which created a shortage of cargo capacity because they replaced wide-body aircraft," NZPA reported. "At about the same time, Emirates had just entered the Tasman market bringing massive over-capacity of passenger and cargo services, making them a logical source of extra wide-body capacity."

"This was the context of discussions with Emirates which after some negotiation, resulted in a cargo Special Prorate Agreement (SPA); a very standard and entirely legal agreement in the airline industry," said the Air NZ statement.

"Emirates SkyCargo rejected charges of collusion and is prepared to fight which can only be greeted as good news in the air cargo industry," said the editorial.
 

Source: Schednet

 
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