Airlines pay $504M to settle price-fixing scam

[conehead]

Last Updated: Thursday, June 26, 2008 | 11:40 AM ET Four international airlines have agreed to pay $504 million US in fines to settle charges they conspired to fleece consumers by driving up cargo shipping prices.

The U.S. Justice Department called the case one of the largest antitrust settlements in U.S. history.

Associate Attorney General Kevin O'Connor called the scam an "international price-fixing cartel" that cost consumers hundreds of millions of dollars between 2001 and 2006. In some instances, for example, fuel surcharges rose by 1,000 per cent.

One of the four airlines — Air France-KLM — has agreed to pay $350 million US of the total settlement.

The investigation is continuing.

© The Canadian Press, 2008

Great reporting, who are the other three airlines?

[Cargo Agent]

You know that if AC had been named it would have been screaming on every headline in the country immediately.

To answer your question: The other carriers are Cathay Pacific Airways, Martinair Holland and SAS Cargo Group

From AP

Airlines pay $504M to settle price-fixing scam

By LARA JAKES JORDAN – 5 hours ago

WASHINGTON (AP) — Four international airlines have agreed to pay $504 million in fines to settle charges they conspired to fleece consumers by driving up cargo shipping prices.

The Justice Department called the case one of the largest antitrust settlements in U.S. history.

Associate Attorney General Kevin O'Connor called the scam an "international price-fixing cartel" that cost consumers hundreds of millions of dollars between 2001 and 2006. In some instances, for example, fuel surcharges rose by 1,000 percent.

One of the four airlines — Air France-KLM — has agreed to pay $350 million of the total settlement. The other carriers are Cathay Pacific Airways, Martinair Holland and SAS Cargo Group

"American consumers and taxpayers pour billions of dollars each year into the pockets of these lawbreakers," said FBI Assistant Director Joe Persichini. "Let there be no mistake that people in corporations that take consumers and taxpayers in this way are thieves."

Authorities said executives from each of the airlines met repeatedly in the United States, Europe and Asia to cook up a price-fixing scheme that raised cargo rates, fuel surcharges and security costs for businesses and, ultimately, consumers. The cartel focused on goods shipped to and from the United States, including electronics, clothing, produce and medicines, O'Connor said.

The settlement agreement, filed Thursday in U.S. District Court in Washington, still requires a judge's approval.

Thursday's announcement marked the latest in a series of cargo shipping settlements over the last two years. Earlier, British Airways, Korean Air, Qantas and Japan Airlines filed similar agreements as part of the investigation.

In all, airlines have agreed to pay $1.2 billion in fines — what O'Connor called "the highest total amount of fines ever imposed in a criminal antitrust investigation."

The investigation is continuing.

[Maverick]

You know that if AC had been named it would have been screaming on every headline in the country immediately.

And well it should if that was the case. 4 airlines just got fined half a billion dollars, HALF A BILLION!! for price fixing. Do you WestJet or Air Transat would get a pass if they did it?

The woe-is-Air-Canada whining about the media is getting a bit old don't you think?

[Guest rattler]

Regarding AC, in actual fact:

Airline Cargo Price Fixing LitigationDate Filed: March 6, 2006

Court: U.S. District Court

Location: Miami

Hagens Berman Sobol Shapiro is researching claims of price fixing in the airline cargo industry.

Several major carriers are being investigated by the U.S. Justice Department and the European Union for cartel-like practices by cooperating with AMR Services – an air cargo service provider - to limit air cargo competition by fixing prices in the industry.

If you have shipped packages on any of the following airlines you may be eligible to be part of a class-action lawsuit.

Air Canada

Air France

Asiana Airlines

British Airways

Japan Airlines

Nippon Airways

Scandinavian Airlines (SAS)

United Airlines

Air Canada takes $125 million provision for cargo price fixing probe

Ross Marowits, The Canadian Press

May 8, 2008 - 5:36 p.m.

MONTREAL - Air Canada (TSX:AC.A) lost $288 million in the traditionally slow first quarter after taking a $125 million provision relating to cargo price-fixing investigations by competition authorities in the United States, Canada and Europe.

The Montreal-based airline has also been named in U.S. and Canadian class action lawsuits. The provision "does not address the proceedings in all jurisdictions, but only where there is sufficient information to do so," the airline said Thursday, refusing to provide more details during a conference call to discuss quarterly results.

"The corporation is co-operating with these investigations, which are likely to lead to proceedings against the corporation and a number of airlines and other cargo operators," it said in its quarterly report.

[Guest rattler]

And well it should if that was the case. 4 airlines just got fined half a billion dollars, HALF A BILLION!! for price fixing. Do you WestJet or Air Transat would get a pass if they did it?

The woe-is-Air-Canada whining about the media is getting a bit old don't you think?

Now if only Westjet carried cargo... http://www.corelogistics.net/Default.aspx?PgTyp=page&pgID=44

[Maverick]

Now if only Westjet carried cargo... http://www.corelogistics.net/Default.aspx?PgTyp=page&pgID=44

http://c5dsp.westjet.com/guest/cargo/cargoTemplate.jsp

How do you reckon the freight gets where it's going, a flock of Hi gross weight pigeons?

[Guest rattler]

http://c5dsp.westjet.com/guest/cargo/cargoTemplate.jsp

How do you reckon the freight gets where it's going, a flock of Hi gross weight pigeons? 

 

There is a difference when all of your upload is only offered to High Volume Commercial customers and those airlines who offer service to other Guests (customers) .

In 1997 WestJet entered into a partnership agreement with ELS Marketing Inc. ELS Marketing is a supplier of air freight related services and products. Under this agreement ELS Marketing is responsible for all sales, marketing, accounting and administrative functions of the cargo product. In essence, ELS Marketing is an extension of WestJet.

[UpperDeck]

News.....AC is in fact a party to a class action law suit commenced in London, On on behalf of an "aggrieved party" by Siskinds.

Amazing, isn't it? There you are; thinking everything is hunky-dory and the next thing you know, you've got a judgement against you for millions for engaging in "wrongful conduct".

Makes you think for a moment; "Was that terribly smart---signing that form letter to Al Laing?"

[Guest rattler]

I wonder when the decision will be made regarding AC in this regard? Didn't they set aside a large amount of money in their "just in case funds" to cover the possibility of fines?

Qantas fined CAD155,000 for price-fixing in Canada

Published in Airline Industry Information on Wednesday, 08 July 2009 at 15:55 GMT

Copyright © 2009, M2 Communications

Australian airline Qantas (Australia:QAN) has pleaded guilty to participating in an air cargo cartel, Canada's Competition Bureau said on Tuesday.

The airline has been fined CAD155,000 for joining a conspiracy to fix surcharge prices on air cargo exported on certain routes from Canada between May 2002 and February 2006.

During most or all of this period Qantas Freight transported cargo by road from Canada to the United States for onward shipment to Australia and other destinations, the Competition Bureau said.

Qantas is the fourth air cargo carrier to be convicted in this Canadian investigation. Air France and Dutch airlines KLM and Martinair pleaded guilty on 26 June 2009 to fixing air cargo surcharges for shipments on certain routes from Canada. They were fined a combined total of CAD10m.

The investigation into the alleged conduct of other carriers is continuing.

[Trader]

I think they still get off easy. If any of us were found guilty of conspiracy we would go to jail. Perhaps a few execs in jail might stop this behavior.

As long as managment has nothing to lose personally the crap will continue - and no doubt those actually caught are only the tip of the iceberg.

[Thebean]

A slap on the wrist. Tsk tsk. Don't do it again.

Qantas fined in Canada air cargo price-fix scheme

Tue Jul 7, 2009 12:10pm EDT

VANCOUVER, British Columbia, July 7 (Reuters) - Australia's Qantas Airways Ltd (QAN.AX) has pleaded guilty to participating in a price-fixing conspiracy on air cargo exported on certain routes from Canada between May 2002 and February 2006, Canada's Competition Bureau said on Tuesday.

Qantas, which is the fourth carrier to be convicted in the bureau's conspiracy investigation, admitted that during this period its freight division fixed surcharges on some cargo that was trucked from Canada to the United States for onward shipment to Australia and other destinations.

The bureau fined Qantas C$155,000 ($133,620) for its part in the scheme, which it continues to investigate.

Last month the bureau, an arms-length government agency, fined Air France-KLM (AIRF.PA), Europe's biggest airline, and a subsidiary, Martinair, a combined C$10 million for communicating with competitors about the amount and timing of fuel surcharges on air cargo exported from Canada.

($1=$1.16 Canadian) (Reporting by Nicole Mordant; editing by Rob Wilson)

[dagger]

I'll be interested to see how AC fares in this.

AC created a formula for the fuel surcharge, which it posted on its website. The surcharge adjusted upward or downward according to the spot price of fuel in Rotterdam and Singapore. So if AC is convicted, I'd like to read the judgment to figure out what they did wrong legally, because otherwise how it's hard to see how any surcharge or fare matching for that matter wouldn't constitute price fixing - in any industry.