BA and Korean plead guilty in price-fixing case
British Airways and Korean Air both officially pleaded guilty to price-fixing charges yesterday in a US federal court, which levied a fine of $300 million against each.
The carriers previously had agreed to pay that amount in an accord with the Dept. of Justice as part of the ongoing investigation into antitrust violations by airlines around the world relating to illegal cooperation on setting surcharges. The probe, which is being conducted jointly with authorities in other countries, first focused on cargo but later evolved to include passenger flights as well.
The presiding judge could have levied about $150 million more in fines to each airline under sentencing guidelines. But while noting the “seriousness of these charges,” he said the carriers had been cooperative in the investigation and did not warrant the highest penalty.
While not naming additional airlines, the judge said that BA and KE provided information that could lead “to the implication of other carriers.” DOJ said in statement that its antitrust division “is actively continuing its investigation into the air transportation industry.” Qantas earlier this month set aside $40 million “to cover a potential fine that may be imposed” by DOJ.

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