Four International Airlines Fined $504 Million for Manipulating Cargo Costs

After an investigation headed by Associate Attorney General Kevin O’Connor, four international airlines have agreed to a plea deal for charges of price-fixing cargo costs and fleecing companies of millions, which in turn have cost consumers hundreds of millions of dollars in increased prices. The plea deal settlement, which contained a total of $504 million in fines, named Air France and KLM Royal Dutch Airlines, Cathay Pacific Airways Ltd., Martinair Holland and SAS Cargo Group as the airline conspirators according to the Department of Justice.

O’Connor stated in a June 26 conference that “this investigation focuses on a conspiracy involving a number of the world’s largest airlines to manipulate air cargo transportation costs through a multi-year price fixing scheme,” and went on to not that “the conspiracy, conservatively, has affected billions of dollars in shipments.”

Justice Department spokeswoman Gina Talamona said that under the plea deal the airlines were not obligated to notify which shippers had been cheated. She added that any produce companies, which were a prime target in this price-fixing conspiracy, who hoped to recoup money should take part in one of several class action lawsuits that have already been filed.

Shippers will not be able to file claims against the $504 million, which is set to be added to a crime victims’ fund that supports almost 2,500 victim assistance programs.