Taiwan's flag carrier fined US$40 million for price fixing

TAIWAN flag carrier, China Airlines, has pleaded guilty and will pay a US$40 million fine for its role in a conspiracy to fix prices, announced US Department of Justice prosecutors.

They said Taiwanese flag carrier China Airlines joined an ongoing conspiracy among cargo airlines that began as early as January 1, 2000. Under the plea agreement, China Airlines has agreed to co-operate with the department's ongoing antitrust investigation.

"According to the charge, China Airlines carried out the conspiracy by agreeing during meetings and other communications on certain components of the cargo rates to be charged for shipments on certain routes to and from the United States and by levying cargo rates in accordance with the agreements reached. As part of the conspiracy, China Airlines monitored and enforced adherence to the agreed-upon cargo rates," said the department in its release.

The investigation has brought up to 18 airlines charged so far, including BA, Korean, Qantas, Japan Airlines, Martinair, Cathay, SAS Cargo Group, Air France, KLM, El Al, LAN Cargo, Aerolinhas Brasileiras, Cargolux, Nippon Cargo Airlines, Northwest Airlines and Asiana Airlines.

In addition, Polar Air Cargo LLC was charged in this investigation and is scheduled to enter a guilty plea and be sentenced on October 15, 2010.

More than $1.6 billion in criminal fines have been imposed. Also, eight airline executives have been charged and four of them have been sentenced to prison. Charges are pending against the remaining four executives, prosecutors said in a statement.
(Source:www.schednet.com)