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ANA Charged In U.S. Price-Fixing Probe

All Nippon Airways has become the latest international airline to plead guilty to price-fixing charges, and the carrier has agreed to pay a $73-million criminal fine.

The carrier admitted “its role in two separate conspiracies to fix prices in the air transportation industry,” the U.S. Justice Department said. Including ANA, a total of 19 airlines and 14 executives have been charged in the Justice Department’s continuing investigation. So far, more than $1.6 billion in criminal fines have been obtained.

A two-count felony charge was filed Nov. 1 in the U.S. District Court in Washington, D.C. According to the charges, the Japanese carrier engaged in a conspiracy to fix “one or more components of cargo rates” on international shipments from at least as early as April 1, 2000, until at least Feb. 14, 2006. ANA was also charged with engaging in a conspiracy to fix unpublished passenger fares on tickets purchased in the U.S. from at least as early as April 1, 2000, until at least April 1, 2004. Unpublished fares are offered to travel agents for purchase by certain consumers.

ANA “carried out the conspiracies … during meetings and other communications,” the Justice Department said. “As part of the conspiracies, ANA levied cargo rates and unpublished passenger fares in accordance with the agreements reached, and monitored and enforced adherence to the agreed-upon cargo rates and unpublished passenger fares.”

The ANA charges are the result of a joint investigation being conducted by the Justice Department Antitrust Division’s National Criminal Enforcement Section, the FBI’s Washington Field Office, the Transportation Department’s Office of Inspector General and the U.S. Postal Service’s Office of Inspector General. ANA has agreed to cooperate with the ongoing investigation.

 

 

(Photo: Star Alliance)

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