Airlines to pay US$504 million in fines

Global - Four international airlines have been fined a total of US$504 million for their role in a global price-fixing scandal.

The US Department of Justice, which is carrying out the ongoing investigation, told US media that executives from the airlines met repeatedly in the US, Europe and Asia to settle a price-fixing scheme that included raising cargo rates, fuel surcharges and security costs for businesses that eventually affected consumers. The airlines focused on goods shipped to and from the US including electronics, clothing, produce and medicines.

Air France-KLM has reportedly agreed to pay US$350 million of the total settlement. The other airlines involved in the investigation are Cathay Pacific Airways, Martinair Holland and SAS Cargo Group.

Air France follows other cargo shipping settlements including British Airways, Korean Air, Qantas and Japan Airlines, who filed similar agreements earlier.