Former British Airways executive to plead guilty to price-fixing charges

Airline Industry Information, Oct 1, 2008

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The US Department of Justice has reported that a British citizen and former British Airways World Cargo executive will be pleading guilty to participating in a conspiracy to fix international air cargo shipment rates.

The former executive will serve eight months in prison and pay a criminal fine of USD20,000 under the plea agreement, which is subject to court approval.

The man has been accused of participating in meetings, conversations and communications relating to cargo rates to be charged on shipments to and from the US; during these meetings agreeing on certain components of cargo rates to be charged; levying cargo rates in accordance with these agreements and engaging in meetings, conversations and communications in order to monitor and enforce the agreed upon cargo rates.

The US Department of Justice confirmed that British Airways Plc was ordered to pay a criminal fine of USD300m in August 2007 following pleading guilty to conspiring to fix cargo rates for international air shipments.

Several other airlines have also pleaded guilty to similar charges, including Korean Air Lines, Qantas Airways Limited, Japan Airlines, AS Cargo Group, Cathay Pacific Airways Limited, Martinair Holland NV, Air France (Societe Air France) and KLM Royal Dutch Airlines (Koninklijke Luchtvaart Maatschappij NV), the US Department of Justice confirmed.

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