$60 Million USD !! Blunder
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$60 Million USD !! Blunder
As we are trying to tighten our belts to safe a hundred kilos of fuel here and there, someone blows $60 Million USD in an anti-trust law suit.
Hope he made $61 Million USD before he got caught.
Quote:
Important message from the Chief ExecutiveDear Colleagues,
By now you will have heard that Cathay Pacific entered into a plea agreement with the United States Department of Justice (DOJ) in connection with its investigation into the air cargo services of a number of carriers. According to the DOJ, certain of our air cargo practices - and those of other air cargo carriers operating out of Hong Kong - were in conflict with US law.
We have always endeavoured to comply fully with all Hong Kong laws and those of every jurisdiction in which we operate. Unfortunately, some of our actions relating to shipments from Hong Kong to the United States were in conflict with United States antitrust laws - something we very much regret.
We cooperated fully with the DOJ in its investigation into air cargo activities and concluded that entering into the plea agreement was the best resolution. We will pay a fine of US$60 million, which will be taken into account in our 2008 interim results for the six months ending on 30th June 2008
Hope he made $61 Million USD before he got caught.
Quote:
Important message from the Chief Executive
Dear Colleagues,By now you will have heard that Cathay Pacific entered into a plea agreement with the United States Department of Justice (DOJ) in connection with its investigation into the air cargo services of a number of carriers. According to the DOJ, certain of our air cargo practices - and those of other air cargo carriers operating out of Hong Kong - were in conflict with US law.
We have always endeavoured to comply fully with all Hong Kong laws and those of every jurisdiction in which we operate. Unfortunately, some of our actions relating to shipments from Hong Kong to the United States were in conflict with United States antitrust laws - something we very much regret.
We cooperated fully with the DOJ in its investigation into air cargo activities and concluded that entering into the plea agreement was the best resolution. We will pay a fine of US$60 million, which will be taken into account in our 2008 interim results for the six months ending on 30th June 2008
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oops!!
Can't wait to see how they'll explain away the large cash settlement that they have to pay to settle any future impending lawsuits. Some a little closer to home.
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..ok, so let me get this straight: I (and most of my colleagues), work our behinds off to do the very best we can to ensure the most efficient operation. In most of the past few years, this effort has seen our management reward themselves with obscene bonuses, at the same time telling us that the profit 'didn't trigger the profit sharing formula'. Now, several of these management 'geniuses' thought they would be clever and have ended up violating the law to the tune of SIXTY MILLION DOLLARS. In simple english, these 'geniuses' have caused all of us to probably lose any hope of profit sharing. I DO NOT WANT TO HEAR A WORD FROM TT OR ANY OTHER MANAGER ABOUT THE 'PRICE OF FUEL' OR 'YIELDS ARE UNDER PRESSURE'. TT, I am sure we will be seeing a notice within days of the termination of the managers responsible. I am also sure that that list will stop at a respectable level 'well' below your office...
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Lets not foget the possible onslaught of new NTC's.
"Flight crew only allowed to carry their briefcase on trips", "no bottles of water for flight crew" and no more NUTS!!"
The pilot body should unite to help out the company in this new crisis, afterall they would do the same for us!!
"Flight crew only allowed to carry their briefcase on trips", "no bottles of water for flight crew" and no more NUTS!!"
The pilot body should unite to help out the company in this new crisis, afterall they would do the same for us!!
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Airlines pay $504M to settle price-fixing scam
By LARA JAKES JORDAN
WASHINGTON (AP) — Four international airlines have agreed to pay $504 million in fines to settle charges they conspired to fleece consumers by driving up cargo shipping prices.
The Justice Department called the case one of the largest antitrust settlements in U.S. history.
Associate Attorney General Kevin O'Connor called the scam an "international price-fixing cartel" that cost consumers hundreds of millions of dollars between 2001 and 2006. In some instances, for example, fuel surcharges rose by 1,000 percent.
One of the four airlines — Air France-KLM — has agreed to pay $350 million of the total settlement. The other carriers are Cathay Pacific Airways, Martinair Holland and SAS Cargo Group
"American consumers and taxpayers pour billions of dollars each year into the pockets of these lawbreakers," said FBI Assistant Director Joe Persichini. "Let there be no mistake that people in corporations that take consumers and taxpayers in this way are thieves."
Authorities said executives from each of the airlines met repeatedly in the United States, Europe and Asia to cook up a price-fixing scheme that raised cargo rates, fuel surcharges and security costs for businesses and, ultimately, consumers. The cartel focused on goods shipped to and from the United States, including electronics, clothing, produce and medicines, O'Connor said.
The settlement agreement, filed Thursday in U.S. District Court in Washington, still requires a judge's approval.
Thursday's announcement marked the latest in a series of cargo shipping settlements over the last two years. Earlier, British Airways, Korean Air, Qantas and Japan Airlines filed similar agreements as part of the investigation.
In all, airlines have agreed to pay $1.2 billion in fines — what O'Connor called "the highest total amount of fines ever imposed in a criminal antitrust investigation."
The investigation is continuing.
We already know they treat their employees like this. Are you really surprised that they could do this to their customers as well?
By LARA JAKES JORDAN
WASHINGTON (AP) — Four international airlines have agreed to pay $504 million in fines to settle charges they conspired to fleece consumers by driving up cargo shipping prices.
The Justice Department called the case one of the largest antitrust settlements in U.S. history.
Associate Attorney General Kevin O'Connor called the scam an "international price-fixing cartel" that cost consumers hundreds of millions of dollars between 2001 and 2006. In some instances, for example, fuel surcharges rose by 1,000 percent.
One of the four airlines — Air France-KLM — has agreed to pay $350 million of the total settlement. The other carriers are Cathay Pacific Airways, Martinair Holland and SAS Cargo Group
"American consumers and taxpayers pour billions of dollars each year into the pockets of these lawbreakers," said FBI Assistant Director Joe Persichini. "Let there be no mistake that people in corporations that take consumers and taxpayers in this way are thieves."
Authorities said executives from each of the airlines met repeatedly in the United States, Europe and Asia to cook up a price-fixing scheme that raised cargo rates, fuel surcharges and security costs for businesses and, ultimately, consumers. The cartel focused on goods shipped to and from the United States, including electronics, clothing, produce and medicines, O'Connor said.
The settlement agreement, filed Thursday in U.S. District Court in Washington, still requires a judge's approval.
Thursday's announcement marked the latest in a series of cargo shipping settlements over the last two years. Earlier, British Airways, Korean Air, Qantas and Japan Airlines filed similar agreements as part of the investigation.
In all, airlines have agreed to pay $1.2 billion in fines — what O'Connor called "the highest total amount of fines ever imposed in a criminal antitrust investigation."
The investigation is continuing.
We already know they treat their employees like this. Are you really surprised that they could do this to their customers as well?
Last edited by iflylow; 27th Jun 2008 at 08:52.
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simple math
60 million US$ divided by 18000 staff is 3333.33 us$ or 26,000 HKD
There will be a collection desk set up on the street in CX City.
All staff will be "asked" to help out the company in these financially difficult times.
There will be a collection desk set up on the street in CX City.
All staff will be "asked" to help out the company in these financially difficult times.
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I am sure we will be seeing a notice within days of the termination of the managers responsible
With pissed off customers,low level fly-pasts and now THIS..cathay must be very popular in the US right now..
Wouldn't be surprised at all if the US DoT puts CX on their watchlist of foreign carriers..way to go!!!
Guess " The MISmanagement" here on pprune won't be saying cheers to his/her bonus this time..
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I have to say I agree with the sentiments regarding CX and other airlines behaviour here. But, couldn't help thinking of kettles and pots when I read this:
From the FBI, a US government agency that whipped up anti-anything sentiment, to scare the americam politicos whitless, that sent '000's to war in Iraq, on some shady information. The cost of which to the american people in dollars has just passed $0.5trillion, let alone the human cost........taking taxpayers in this way is murder.
Sorry, just had to get that off my chest.
N1 Vibes
Let there be no mistake that people in corporations that take consumers and taxpayers in this way are thieves
Sorry, just had to get that off my chest.
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From the FBI, a US government agency that whipped up anti-anything sentiment, to scare the americam politicos whitless, that sent '000's to war in Iraq, on some shady information. The cost of which to the american people in dollars has just passed $0.5trillion, let alone the human cost........taking taxpayers in this way is murder.
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Business CX style.
Well.. I hope some of you are beginning to get the picture.
Years of no pay rises and in the case of pre B scale, industrial sized chunks taken out of COS.
Illegal firing of employees on a mass scale.
Alleged Corporate mis-governance on an internationally criminal scale.
Nothing has changed at Swire.
So next time you are asked to extend, work on a day off, save fuel........ Look after number one. Fly safe, fly healthy. Your family, health and moral fibre are worth more than pandering to a bunch of exploitive, incompetent, greedy mis-managers.
Years of no pay rises and in the case of pre B scale, industrial sized chunks taken out of COS.
Illegal firing of employees on a mass scale.
Alleged Corporate mis-governance on an internationally criminal scale.
Nothing has changed at Swire.
So next time you are asked to extend, work on a day off, save fuel........ Look after number one. Fly safe, fly healthy. Your family, health and moral fibre are worth more than pandering to a bunch of exploitive, incompetent, greedy mis-managers.
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June 26, 08
fined summary
CX: US$ 60Million
SAS: US$ 52Million
Martinair: US$42Million
AirFrance-KLM: US$ 350million
===============================
504 million
Jan - April 08
JAL: US$ 110Million
QF: US$ 61Million
=============
171 million
Last year
BA: US$ 300Million
Korean Air: US$ 300Million
==============
600 million
only that totals to US$1275Million, and im sure this is ongoing.
did they just change their law to make money??
to help out their economy to be less dragging for the world??
fined summary
CX: US$ 60Million
SAS: US$ 52Million
Martinair: US$42Million
AirFrance-KLM: US$ 350million
===============================
504 million
Jan - April 08
JAL: US$ 110Million
QF: US$ 61Million
=============
171 million
Last year
BA: US$ 300Million
Korean Air: US$ 300Million
==============
600 million
only that totals to US$1275Million, and im sure this is ongoing.
did they just change their law to make money??
to help out their economy to be less dragging for the world??
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I was once told on an AL that Vol 2 is not to be taken litterally, it should be interpreted to suit the situation..... That being the case I would suggest that CX/Swire's legal team interpreted like their asses and TT as the ring leader should take it on the chin just as I would have to explain proceeding past the nearest suitable...............
AFL
AFL
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TT, Mr. PR.
When you see his face on the weekly update, it shows a picture of a very smiley person. Now when he lost 60 million US dollars, it looks like someone just ran over his dog.
Is the sombre look for the Employees, Swire Management or the US Government or is he just sad he got caught?
We all should feel sorry for him.
They should post the same picture when he talks about the rise in fuel prices, starts the propaganda on 13th month or profit share not being paid.
I guess some people just eat it up and believe.
Is the sombre look for the Employees, Swire Management or the US Government or is he just sad he got caught?
We all should feel sorry for him.They should post the same picture when he talks about the rise in fuel prices, starts the propaganda on 13th month or profit share not being paid.
I guess some people just eat it up and believe.
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I think if you look back a few weeks at the management change announcements:
Rupert Hogg - Director Cargo
Rupert Hogg is currently Managing Director of James Finlay Ltd. A wholly owned subsidiary of John Swire & Sons Ltd, James Finlay has extensive tea and horticultural interests in the UK, East Africa, Sri Lanka and Mainland China. Mr Hogg joined John Swire & Sons in 1986. He worked with Cathay Pacific from 1988 to 1997 in various marketing, commercial and revenue management roles in Hong Kong, Korea, Thailand and India. Mr Hogg will succeed Mr Ron Mathison, who will join James Finlay Ltd as Managing Director.
Well done Ron, go off and make the tea.
Rupert Hogg - Director Cargo
Rupert Hogg is currently Managing Director of James Finlay Ltd. A wholly owned subsidiary of John Swire & Sons Ltd, James Finlay has extensive tea and horticultural interests in the UK, East Africa, Sri Lanka and Mainland China. Mr Hogg joined John Swire & Sons in 1986. He worked with Cathay Pacific from 1988 to 1997 in various marketing, commercial and revenue management roles in Hong Kong, Korea, Thailand and India. Mr Hogg will succeed Mr Ron Mathison, who will join James Finlay Ltd as Managing Director.
Well done Ron, go off and make the tea.