Saturday, March 5, 2011

21 Airlines Fined For Price Fixing

During the recession years of 2000-2006, airlines were scrambling to survive the downturn in the economy and stay alive. But according to federal prosecutors, what they came out with was a massive price-fixing scheme that artificially inflated "fuel surcharges" and cargo rates for international travelers and shippers.

The court cases brought by prosecutors alleges a conspiracy to fix rates and fees for flights originating and ending in the U.S.

The airlines accused have already paid fines in excess of $1.7 billion, and many executives involved have been charged by the U.S. Department Of Justice. Four executives are serving time in jail.

Among the culprits convicted are British Airways, KLM, Air France, and Korean Airlines.

All airlines, none of which are U.S. flag, were convicted in violating the Sherman Anti-Trust Act.

www.premieretravel.com

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