US Dept of Justice charge SIA (SQ) or Price Fixing, EVA GP fined US$13.2million

[uncleyap]

http://www.nzherald.co.nz/crime/news/article.cfm?c_id=30&objectid=10724312

Airlines' price fix case starts in court

By Owen Hembry 5:30 AM Monday May 9, 2011

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Battle lines will start being drawn this week in a cartel case by the Commerce Commission against carriers including Air New Zealand at the High Court at Auckland.
The commission's case alleges airlines colluded to raise the price of freighting cargo.
It accuses Air New Zealand, Cathay Pacific, Emirates, Japan Airlines, Korean Air, Malaysian Airlines, Singapore Airlines Cargo and Singapore Airlines, and Thai Airways.
The first stage of the cartel case starts on Wednesday and will lay the ground for the remainder of the case due in July next year to deal with the price-fixing allegations.
The commission said the key issue for the first stage was the meaning of a market in New Zealand and whether air cargo services inbound to the country were part of such a market.
Commerce Commission general counsel for enforcement Mary-Anne Borrowdale said in March the commission was preparing to test whether it could pursue price-fixing conduct that occurred overseas.
"We need to know whether deliberate collusion overseas to affect New Zealand markets is something that we can take enforcement action against," Borrowdale said.

The Herald understands that if the court finds the commission has no jurisdiction over the inbound market, the second part of the trial next year will be limited to the outbound market.
Possible appeals of the first ruling would need to be heard before the second hearing.
Air New Zealand general counsel John Blair last month said the carrier had maintained from the start of the commission's investigation more than five years ago, that neither the airline nor its employees had committed any breach of the Commerce Act.
The NZX-listed airline, which is 74.7 per cent owned by the Government, said it had successfully defended its position and practices at the European Commission after a probe into the cargo activities of 22 airlines, and had also been cleared last year after an investigation by the Korean Fair Trade Commission.
Air New Zealand shares closed up 1c on Friday at $1.13.
Goldman Sachs head of research Marcus Curley said the market was not showing much concern about the case.
"[It] would be of the belief that any potential fine if there was one would be somewhat irrelevant compared to the broader business," Curley said.
The New Zealand Commerce Commission started proceedings in 2008 against 13 international airlines and eight executives, alleging the carriers colluded to raise the price of freighting cargo by imposing fuel surcharges on shipments in and out of New Zealand.
Proceedings have been dropped against United Airlines, PT Garuda Indonesia and six Air New Zealand executives.
The two airline executives remaining as part of the case are not employees of Air New Zealand.
The commission in March said Qantas Airways, British Airways and Cargolux International Airlines had agreed settlements, which involved admitting liability and paying penalties.
The High Court in Auckland last month imposed penalties against Cargolux International Airlines and British Airways of $6 million and $1.6 million respectively.
Qantas in March said the terms of its settlement with the commission were confidential but included an agreement to recommend to the High Court that the airline pay a $6.5 million fine. The court judgment is pending.
"Qantas will continue to co-operate fully with the commission in its prosecution of other airlines," the Australian carrier said.
The first part of the cartel case is due to start on Wednesday and is expected to last five weeks.
CARTEL CASE
The New Zealand Commerce Commission started proceedings in 2008 against 13 international airlines and eight executives alleging the carriers colluded to raise the price of freighting cargo by imposing fuel surcharges on shipments in and out of New Zealand.
DROPPED
United Airlines, PT Garuda Indonesia and six Air New Zealand executives.
SETTLED
Qantas Airways, British Airways, Cargolux International Airlines.
DEFENDING
Air New Zealand, Cathay Pacific Airways, Emirates, Japan Airlines International, Korean Air Lines, Malaysian Airlines System Berhad, Singapore Airlines Cargo and Singapore Airlines, Thai Airways International Public and two airline executives (not from Air New Zealand).
By Owen Hembry | Email Owen

 

[uncleyap]

http://7thspace.com/headlines/38435..._for_price_fixing_on_air_cargo_shipments.html

USDOJ: EVA Airways Corporation Agrees to Plead Guilty and to Pay $13.2 Million Fine for Price Fixing on Air Cargo Shipments



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WASHINGTON — 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 today.

According to a one-count felony charge filed today in United States 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 February 14, 2006. Under the plea agreement, which is subject to court approval, EVA has agreed to cooperate with the department’s antitrust investigation.

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.

Today’s charge is the result of a joint investigation into the air transportation industry being conducted by the Antitrust Division’s National Criminal Enforcement Section, the FBI’s Washington Field Office, the Department of Transportation’s Office of Inspector General and the United States Postal Service’s Office of Inspector General. Anyone with information concerning price fixing or other anticompetitive conduct in the air transportation industry is urged to call the Antitrust Division’s National Criminal Enforcement Section at 202-307-6694, visit www.justice.gov/atr/contact/newcase.htm or call the FBI’s Washington Field Office at 202-278-2000.

Contact: Department of Justice Main Switchboard - 202-514-2000



Reported by: US Department of Justice

 

[uncleyap]

If EVA Airways pleaded guilty or the case to get US$13.2 million $$$fines$$$ what would be SIA's total cost for their liabilities in this case? Including Legal Fees and Losses?

I can be easily 5X more that EVA airways US$13.2M fine, not to forget that 2 business entities of SQ got charged unlike EVA is 1 single entities. SIA & SQ Cargos are 2 separated defendants in the same USDOJ trial. That means 2 sets of legal fees and 2 separated verdicts / sentences can be expected. Our Singaporean tax payers and share holders losses will be the total of both added up.:(

We became desperate Obama Govt's ATM machine again.:oIo:

LEEgime will X'fer losses to us Singaporeans via one way or another.:oIo: