Polar Air accepts US$17.4 million price fixing fine

POLAR Air Cargo, of Purchase, New York, has agreed to pay a US Department of Justice fine of US$17.4 million for involvement in manipulation of fuel surcharges and other rates more than seven years ago when the company was controlled by different owners.

"We are glad to put this behind us. It is important to note that it involves conduct that began in 2000, almost two years before Polar LLC was acquired by [Atlas Air Worldwide Holdings Inc] AAWW," said AAWW president and CEO William Flynn.

"The matter occurred before Polar LLC's emergence from bankruptcy in July 2004 and relates to a period more than seven years ago. None of Atlas Air Inc, Polar Air Cargo Worldwide, or any of AAWW's current board or senior management was implicated in this investigation," said Mr Flynn.

The plea agreement executed by Polar LLC is not expected to adversely impact any of AAWW's other operations. The fine will be paid in instalments over five years and the company has already recorded an expense for the full amount in anticipation of paying the fine. But the plea bargain is still subject to approval of the US District Court approval.
(Source:www.schednet.com)