We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
Home » Ex-Air France executives charged with fixing cargo prices
newsworthy

Ex-Air France executives charged with fixing cargo prices

April 27, 2011
Mark B. Solomon
No Comments

Two former Societe Air France cargo executives were charged today with conspiring to fix air-cargo prices, the latest action in a sweeping trans-Atlantic probe into alleged price fixing that may result in prison time for numerous airline cargo executives and as much as $2.1 billion in settlements paid out to air shippers and freight forwarders.

Ex-vice presidents Marc Boudier and Jean Charles Foucault each face one charge of conspiracy to restrain trade in violation of the Sherman Antitrust Act, a crime punishable by as much as 10 years imprisonment and a fine of as much as $1 million, prosecutors said today in a statement. The men were indicted by a federal grand jury in Chicago, the government said.

"Boudier and Foucault carried out a conspiracy by fixing and coordinating rates on air-cargo shipments to certain U.S. locations and elsewhere," from August 2004 to February 2006, the U.S. Justice Department said in a statement.

The indictments stem from lawsuits filed in the United States, Canada, the European Union (EU), and the United Kingdom alleging that from Jan. 1, 2000, to Sept. 11, 2006, dozens of airlines conspired to fix prices of air shipping services by coordinating to inflate the cost of fuel and security surcharges.

The airlines were also accused of jointly agreeing to eliminate or prevent rate discounting practices, and setting appropriate yield targets for the shipments they handled. It is believed that global air shipping charges were inflated by about 10 percent as a result of the conspiracy.

Several regulators, including the Justice Department and the European Commission, have been investigating the issue for years. To date, the United States has imposed $1.6 billion in fines on 18 airlines and filed criminal charges of price fixing against 18 airline executives.

On Nov. 9, the EU fined 11 airlines $1.1 billion for their role in the collusion. The largest fine was meted out to Air France-KLM to the tune of $476 million.

In the United States, civil plaintiffs have begun a price fixing class action against 45 U.S. and foreign airlines. To date, 12 airlines have agreed to settlements totaling about $540 million. With additional settlements expected in the coming months, the total in settlements could exceed $1 billion, according to Class Action Refund LLC, a New York firm seeking to represent air-cargo users that might be eligible for refunds.

Only shippers are eligible to participate in the European settlements. By contrast, direct purchasers of air shipping services, whether they be shippers or freight forwarders, are eligible to share in the U.S. settlements.

Transportation Air
  • Related Articles

    Kuehne + Nagel links electronic booking processes with Air France KLM Martinair Cargo

    Japanese freight forwarders plead guilty to fixing air cargo fees on Japan-U.S. services

    France's CMA CGM Group advances air cargo business

Marksolomon
Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.

Recent Articles by Mark Solomon

Coming together for road safety: interview with Joshua Girard

Off the rails

Freight rate spikes shaking up the C-suite

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Big and bulky last-mile delivery segment set for hot growth

  • Outlook 2023: What’s in store for logistics/supply chain?

  • Ports, maritime operators see tide turning as ocean freight tsunami subsides

  • In Person: Steve Beverly of Penske

  • InPerson interview: Rob McKeel of Fortna

Now Playing on DCV-TV

89cfed30 8aac 4284 960d c8c8c1886e16

Have you checked your read rate lately?

DCV-TV 4: Viewer Contributed
No reads. Unaccounted for boxes. Boxes sent to the wrong place. A logistics nightmare! But this nightmare doesn’t have to come true. SICK’s linear line scan camera is what dreams are made of for your logistics operations. And if you’re worried about motion and vibration from conveyor belts...well, there’s no reason...

FEATURED WHITE PAPERS

  • The five best applications for robotic lift trucks in warehouse environments

  • Fulfillment Facility Improved Efficiencies by 4x

  • 3PLs: Complete Orders Faster with Flexible Automation

  • Reusable Packaging for the New Wave of Supply Chain Automation

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing