As if the airlines aren't already having a big enough problem finding cash to pay for jet fuel, the Justice Department announced Thursday several airlines will be paying record fees for participating in an illegal agreement, as a result of an ongoing investigation into the air cargo industry.
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Air France; Cathay Pacific Airways Ltd.; Koninklijke Luchtvaart Maatschappij NV, known as KLM Royal Dutch Airlines; Martinair Holland NV; and SAS Cargo Group A/S have each agreed to plead guilty and pay criminal fines totaling $504 million for participating in a multiyear conspiracy to fix prices. Of the $504 million in fines, Air France-KLM, which now operates under common ownership by a single holding company, has agreed to pay $350 million, the second-highest fine ever levied in a criminal antitrust prosecution.
The DOJ's anti-cartel enforcement program is the world's most experienced cartel detection and prosecution program in the world, and it has been gaining momentum since recent legislative changes in the U.S. have allowed it to levy higher fines. There has also been a dramatic increase in the number of people serving jail time for criminal cartel involvement, and the number of days corporate executives must serve has also been increasing. In many cases, judges have imposed sentences of several months in prison.
DOJ has also managed to get new legislation to improve its ability to execute search warrants for cartel investigations, and it has been working to create memorandums of understanding with a raft of foreign nations, allowing it to extend the reach of its investigations. - Cecile Kohrs Lindell
See DOJ's press statement
Comments
It's only right. We are throwing people in jail for stealing TV sets, why shouldn't these criminals at least get a fine for their activities?
Personally, I think the executives should have to pay these fines or jail time, but of course it will just come from the company so nobody will actually suffer - only the shareholders.
Such a shame.