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September 28, 2010 - China Airlines Ltd. has agreed to plead guilty and to pay a $40 million criminal fine for its role in a conspiracy to fix prices in the air transportation industry, the Department of Justice announced on Monday. According to a one-count felony charge filed today in U.S. District Court for the District of Columbia, Taiwan-based China Airlines engaged in a conspiracy to fix the cargo rates charged to customers for international air cargo shipments to and from the United States from at least as early as January 2001, until at least Feb. 14, 2006. |
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The department said that China Airlines joined an ongoing conspiracy among cargo carriers that began at least as early as Jan.1, 2000. Under the plea agreement, which is subject to court approval, China Airlines has agreed to cooperate with the department?s ongoing antitrust investigation. Air cargo carriers transport a variety of cargo shipments, such as heavy equipment, perishable commodities, and consumer goods, on scheduled international flights.
China Airlines
(CAL) is the flag carrier of the Republic of China (commonly known as 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.
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Including with
this charge, as a result of this investigation, a total of 18 airlines
and eight executives have been charged in the Justice Department?s
ongoing investigation into price fixing in the air transportation
industry. To date, more than $1.6 billion in criminal fines have been
imposed and four executives have been sentenced to serve prison time.
Charges are pending against the remaining four executives.
The airlines that
have pleaded guilty, or have agreed to plead guilty, as a result of the
department?s ongoing investigation into the air transportation industry
are; British Airways, Korean Air Lines, Qantas Airways, Japan Airlines
International, Martinair, Cathay Pacific Airways, SAS Cargo, Air France,
KLM Royal Dutch Airlines, EL AL Israel Airlines, LAN Cargo, Aerolinhas
Brasileiras, Cargolux Airlines International, Nippon Cargo Airlines,
Northwest Airlines, and Asiana Airlines.
Additionally, on
Sept. 2, 2010, Polar Air Cargo LLC was charged in this investigation and
is scheduled to enter a guilty plea and be sentenced on Oct. 15, 2010.
Airline executives who have pleaded guilty as a result of the
investigation are Bruce McCaffrey of Qantas, Keith Packer of British
Airways, Franciscus Johannes de Jong of Martinair, and Timothy Pfeil of
SAS Cargo. On Aug. 12, 2009, Jan Lillieborg, a citizen and resident of
On Aug. 26, 2010,
Joo Ahn Kang, former president of Asiana, and Chung Sik Kwak, former
vice president of the
On Sept. 21, 2010,
Maria Christina ?Meta? Ullings, senior vice president of Cargo Sales and
Marketing of Martinair Holland N.V., was indicted for participating in a
conspiracy to fix and coordinate certain surcharges on air cargo
shipments to and from the |
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