Air India denies US charges of air cargo price fixing

THE US Justice Department has charged Air India of "unfair trade practices" in cargo rates, adding to a total of 18 airlines and eight executives charged with price-fixing within the air cargo industry.


Air India denies all of the offences, which allegedly occurred before its merger with India Airlines, and includes setting cargo charges at identical rates and fuel surcharges.


"We are not at all involved," said a spokesman for Air India, according to the Financial Express, adding that during the time of its alleged part of an airline cartel it had a very small scale operation, accounting for two to three per cent of volume.


Air India has just received its first handout in its state financial package totalling US$432 million. The national carrier's chairman and managing director Arvind Jadhav has written to the civil aviation ministry asking it to take up the issue of penalties with the US Justice Department's anti-trust unit on diplomatic grounds.


The airline will have to argue that there was no violation of competitive practices, said Centre for Asia Pacific Aviation (CAPA) head Kapil Kaul.
(Source:http://www.schednet.com)