Agrees To Serve 8 Months In Jail For Role In Cargo Collusion
Scheme
A British citizen and former executive of British Airways World
Cargo has agreed to plead guilty, serve eight months in jail and
pay a criminal fine for participating in a conspiracy to fix rates
for international air cargo shipments, the Department of Justice
announced this week.
According to the charges filed in US District Court in the
District of Columbia, Keith Packer, former Commercial General
Manager for British Airways World Cargo, and his co-conspirators
engaged in a conspiracy to fix the air cargo rates charged to
customers for international air shipments, including to and from
the US, in violation of the Sherman Act.
Under the plea agreement -- which is subject to court approval
-- Packer has agreed to serve eight months in jail, pay a $20,000
criminal fine and cooperate with the Department's ongoing
investigation.
Packer is the first foreign national and third individual
charged as part of the Antitrust Division's ongoing investigation
into price fixing in the air transportation industry. Additionally,
nine companies have been charged.
"The cost of shipping products in and out of the United States
is a critical component of our economy and a price that every
American business and consumer bears," said Scott D. Hammond,
Deputy Assistant Attorney General in charge of the Antitrust
Division's Criminal Enforcement Program. "Those who conspire to
cheat U.S. businesses and consumers by fixing shipping rates will
be held accountable."
According to the charges, Packer and his co-conspirators engaged
in the "price fixing conspiracy" from as early as March 2002,
through at least February 14, 2006.
In August 2007, British Airways Plc pleaded guilty and was
sentenced to pay a $300 million criminal fine for conspiring to fix
cargo rates for international air shipments, including to and from
the United States, and conspiring to fix passenger fuel surcharges
for long-haul international air transportation, including between
the United States and United Kingdom. The same day, Korean Air
Lines pleaded guilty and was sentenced to pay a $300 million
criminal fine for conspiring to fix cargo rates charged to
customers in the United States and elsewhere for international air
shipments and conspiring to fix wholesale and passenger fares for
flights from the United States to Korea.
In January 2008, Qantas Airways Limited pleaded guilty and was
sentenced to pay a $61 million criminal fine for its role in a
conspiracy to fix cargo rates to customers in the United States and
elsewhere for international air shipments. In May 2008, Japan
Airlines followed suit... and was sentenced to pay a $110 million
criminal fine for conspiring to fix rates for international cargo
shipments.
As ANN reported, Bruce McCaffrey, Qantas'
former highest-ranking executive employed in the United States,
pleaded guilty and was sentenced to serve six months in jail and
pay a $20,000 criminal fine for fixing cargo rates to customers in
the United States and elsewhere for international air
shipments.
SAS Cargo Group A/S (SAS), Cathay Pacific Airways Limited
(Cathay), Martinair Holland N.V. (Martinair), Societe Air France
(Air France) and Koninklijke Luchtvaart Maatschappij N.V. (KLM
Royal Dutch Airlines) have all also pleaded guilty to conspiring to
fix prices on air cargo rates. SAS was sentenced to pay a $52
million criminal fine, Cathay was sentenced to pay a $60 million
criminal fine, Martinair was sentenced to pay a $42 million
criminal fine, and Air France-KLM, which now operates under common
ownership by a single holding company, was sentenced to pay a $350
million criminal fine.