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EVA Airways To Pay
$13.2 Million Fine For Air Cargo Price Fixing By Eddy Metcalf |
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May 31, 2011 - EVA Airways Corporation has agreed to
plead guilty and to pay a $13.2 million criminal fine
for its role in a conspiracy to fix prices in the air
cargo industry, the Department of Justice announced. According to a one-count felony charge filed on Friday in U.S. District Court for the District of Columbia, Taiwan-based EVA participated in a conspiracy to fix particular cargo base rates or fees charged to customers for certain international air shipments. Including to and from the United States from at least as early as January 2003 until at least Feb. 14, 2006. Under the plea agreement, which is subject to court approval, EVA has agreed to cooperate with the department?s antitrust investigation. |
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As a result of the department?s investigation into price fixing in the air transportation industry, including EVA, a total of 22 airlines and 21 executives have been charged. To date, more than $1.8 billion in criminal fines have been imposed and four executives have been sentenced to serve prison time. Charges are pending against the remaining executives.
EVA
transports a variety of cargo shipments, including sensitive
equipment used to manufacture liquid crystal display (LCD)
panels, perishable commodities such as cherries and pet food,
and consumer goods, on scheduled flights within Taiwan and
internationally, including to and from the United States.
According
to the charges, EVA and co-conspirators carried out the
conspiracy by agreeing during meetings, conversations and other
communications on particular cargo base rates or fees to be
charged for certain international air shipments. As part of the
conspiracy, the department said that EVA and co-conspirators
levied cargo rates in accordance with the agreements reached,
and monitored and enforced adherence to the agreed-upon cargo
rates.
EVA is
charged with price fixing in violation of the Sherman Act, which
carries a maximum fine for corporations of $100 million. The
maximum fine may be increased to twice the gain derived from the
crime or twice the loss suffered by the victims of the crime, if
either of those amounts is greater than the statutory maximum
fine. |