Air France-KLM, Cathay Pacific Airways Ltd, SAS AB and Martinair Holland NV have collectively been fined US$504 million by the US Justice Department for price-fixing air cargo in violation of competition laws.
This is the latest batch of fines in an ongoing probe that dates back to 2001 and has landed a number of major airlines in hot water.
Hong Kong's Cathay Pacific issued a statement saying it had always endeavoured to comply with Hong Kong laws and those of every jurisdiction in which it operates.
"Unfortunately, in this instance, some actions conflicted with US anti-trust laws, and Cathay Pacific very much regrets this," the Cathay statement said.
Within the total penalty, Air France-KLM has agreed to pay a fine of $350 million, Cathay Pacific $60 million, a subsidiary of Danish carrier SAS $52 million, and Martinair Holland $42 million.
Air France said it would cooperate with the US antitrust authorities: "Air France is committed to compliance with all laws, including US antitrust laws. We have taken thorough steps across the organisation to prevent recurrence, as Air France is committed to the highest standards of corporate governance," said the chief executive of Air France-KLM, Jean-Cyril Spinetta in a statement.
Said the Justice Department: "The airlines each engaged in a conspiracy to suppress and eliminate competition by fixing the cargo rates charged to customers for international air shipments.
"The charged conduct affected billions of dollars of consumer and other goods--including produce, clothing, electronics and medicines - shipped by these airlines and their competitors in the air cargo industry," it said.
The antitrust investigation has stretched across both sides of the Atlantic, and last year British Airways and Korean Air Lines were each fined $300 million by the US Justice Department after pleading guilty to conspiring to fix cargo rates for international air shipments and passenger fuel surcharges.
Since then Qantas Airways has been fined $61 million and former high-ranking executive Bruce McCaffrey is now serving an eight month jail term in the United States for participating in the price-fixing cartel. Last month, Japan Airlines Corp was ordered to pay a fine of $110 million for similar price-fixing.
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