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Cargo Price Fixing  
User currently offlineWowpeter From Hong Kong, joined Oct 2006, 156 posts, RR: 0
Posted (6 years 2 months 3 days 23 hours ago) and read 1488 times:

Just our of curiosity...

So far the whole Cargo Price Fixing situations has the US DOJ impose fine on many international airlines... Luthansa got luck out because they are the one who blew the whistle on this issue... those who got fines includes: BA, Qantas, JAL, Korean Air, Cathay Pacific, Air France - KLM, SAS, Martin Air Cargo...

What I find it funny though is that none of the US airlines was charged or being investigated or fines... It could very well be possible that none of the US carriers are involve but given the scale of this issue and the involvement of so many major carriers (in all major alliances), I have my doubts that none of the US carriers are involve. Do you think this is just the US DOJ playing favor for the US carriers? (Of course, I am speculating here, just wanna to see what is everyone thought about this?)

4 replies: All unread, jump to last
 
User currently offlinePanHAM From Germany, joined May 2005, 9334 posts, RR: 29
Reply 1, posted (6 years 2 months 3 days 22 hours ago) and read 1457 times:

Except NWA there is no US cargo airline with a comparable cargo operation. FX and UPS are integrators that also carry some ugly freight, but that's about it. So, wjhat is there to investigate?

Besides, this whoöle operation is an ill-founded and ill-informed government scham anyway.

Air cargo is a highly competetive business, most of the freight shipped is handled by freight forwarders, only a tiny percentage is direect airline-shipper. Freight forwarders buy rates from airlines and play out airlines against each other, then make their own selling rates based on the buying rates.

Price fixing? Bullsh*t. If the DOJ means the surcharges are price fixed - that is bull again. Even if 2 airline cargo managers would agree to fix prices over a couple of drinks at the hotel bar, they would breach that the very same afternoon on the first occasion coming up.

The US government enforces sometimes ridicuouls security requirements and airlines are passing the costs on to the forwarders who do not get a commission for collecting these monies from rtheir customers. Same with fuel surcharges, Airlines are buying security handling from their handling providers and fuel from more or less the same company. Naturally, the surcharges come out kore or less the same.

This is just another scam to make laywers fat and fill government coffers with unreasonable fines. It cannot be, that at industry meetings, attendees are warned not even to take the word "rate" into their mouths, if they don't wont to get a subponea presented at their hotel room door next morning.

It cannot be, that a cargo manager of QANTAS is fined US$20K and jailed for 8 months, just because he cannot afford the legal fight and the company leaves this long and loyal serving employee standing out in the rain. QF should be boycotted by the forwarders for that.

Last, the president of the Japanese freight forwarders council died of a heart attack which might very well be caused by this unjustified witch hunt..



E's passed on! That parrot is no more! He has ceased to be! E's expired and gone to meet 'is maker!
User currently offlineHa763 From United States of America, joined Jan 2003, 3657 posts, RR: 5
Reply 2, posted (6 years 2 months 3 days 22 hours ago) and read 1437 times:
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This was basically a worldwide investigation started by antitrust officials from the E.U. and U.S. DOJ because LH blew the whistle. Investigations were also done by the governments in South Korea, Australia, New Zealand, etc. It's just that the airlines so far have admitted their guilt only in the U.S. market and have been able to reach settlements with the U.S. DOJ.

U.S. carriers were investigated. UA, AA, NW, and Polar were all identified in the press. I believe that DL also was investigated and that UA and AA did settle and pay a fine.

[Edited 2008-06-30 03:51:27]

User currently offlineHa763 From United States of America, joined Jan 2003, 3657 posts, RR: 5
Reply 3, posted (6 years 2 months 3 days 22 hours ago) and read 1427 times:
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Quoting PanHAM (Reply 1):

The whole investigation got started because LH blew the whistle. LH admitted that they were fixing prices with other airlines and they named names. Again, if there was no truth to the claims, the airlines that have so far settled wouldn't have settled and admitted their guilt. If they just wanted to end the investigation, they would settle without admitting guilt (which happens all the time). Or they could fight the charges, which they are apparently doing in the E.U., Australia, and New Zealand.


User currently offlinePanHAM From Germany, joined May 2005, 9334 posts, RR: 29
Reply 4, posted (6 years 2 months 3 days 21 hours ago) and read 1392 times:

Lufthansa has been reported making a plea deal and has settled for a fine of US$ 85 Million. LH thus has avoided a heavier fine. LH has not come out of the bushes and started this whole probe as a "whistle blower".

The investigation was already going on and was obviously started before by over zealous prosecutors in the EU and US.



Quoting Ha763 (Reply 2):

U.S. carriers were investigated. UA, AA, NW, and Polar were all identified in the press. I believe that DL also was investigated and that UA and AA did settle and pay a fine.

Wrong, the status of AA, UA and PO/Atlas is "information requested by authorities", they and other US carriers have not been fined yet.


The question also remains why airlines are put up on the chopping block whereas shipping lines can happily quote identical bunker and currency adjustment fees.

This whole things smells, no, it stinks.

.



E's passed on! That parrot is no more! He has ceased to be! E's expired and gone to meet 'is maker!
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