Three former executives of two Japanese air carriers indicted in conspiracy to fix cargo charges

[News_Editor]

Three former executives of two Japanese air carriers indicted in conspiracy to fix cargo charges

2010-11-17 03:42:30 GMT+7 (ICT)

WASHINGTON D.C. (BNO NEWS) -- Three former executives of two Japanese air carriers on Tuesday were indicted for their involvement in a conspiracy to fix and coordinate components of rates for air cargo shipments to and from the United States.

The indictment charges Takao Fukuchi, former president of Japan Airlines (JAL), and Yoshio Kunugi and Naoshige Makino, both former executives for Nippon Cargo Airlines. The three individuals are charged with conspiring with others to suppress and eliminate competition by fixing and coordinating certain components of cargo rates charged to customers for international air shipments to and from the U.S.

Fukuchi and Kunugi were charged with entering the conspiracy from at least December 1999 until February 2006. Makino was accused of participating in the illegal scheme from June 2001 to February 2006.

Air cargo carriers transport a variety of cargo shipments, such as heavy equipment, perishable commodities and consumer goods, on scheduled international flights. The three co-conspirators participated in meetings, conversations and communications to discuss a fix to certain cargo rates.

As part of the conspiracy, the three former executives implemented collusive cargo rates in accordance with the agreements reached and accepted payments for shipments at collusive and noncompetitive cargo rates.

Fukuchi, Kunugi and Makino were charged with price fixing in violation of the Sherman Act. The violation carries a maximum penalty for each individual of 10 years in prison and a $1 million fine. The maximum fine will be adjusted to twice the gain derived from the crime or twice the loss suffered by the victims of the crime.

A total of 19 airlines and 17 executives have been charged in the Justice Department’s ongoing investigation. To date, over $1.7 billion in criminal fines have been imposed and four executives have been sentenced to prison time.

On November 1, All Nippon Airways (ANA) agreed to pay a $73 million criminal fine for its participation in the price fixing conspiracy. ANA was charged for its involvement in two separate conspiracies.

Days before, four former airline executives were indicted for participating in the same conspiracy. Guillermo "Willy" Cabeza, George Gonzalez, Rodrigo Hernan Hidalgo and Luis Juan Soto were accused of increasing their fuel surcharges on air cargo shipped to south and Central America.

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