ACCC takes CX to Court
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ACCC takes CX to Court
Looks like we may have to give up a bit more on the SLS. Reported in the Australian On-Line today that the ACCC is taking CX to court over allegations (again!!
) of price fixing. You'd think they would have fessed up with QF etc and taken it on the chin and have gotten this out of the way months ago with the first one etc. Now there'll be just more media coverage and dragging the company name through the mud again.
Someone in management needs to go through a critical thinking/decision making course.
) of price fixing. You'd think they would have fessed up with QF etc and taken it on the chin and have gotten this out of the way months ago with the first one etc. Now there'll be just more media coverage and dragging the company name through the mud again. Someone in management needs to go through a critical thinking/decision making course.
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Surely not!!! 
Because .......
Cathay Pacific collected another award for its cargo services on Saturday, highlighting the good reputation the airline maintains in the industry despite the current difficult times.
CX Cargo won the Best Asia Pacific Carrier award at the "26th Cargo Airline of the Year" organised by Air Cargo News. The event was held at the Royal Lancaster Hotel in London.
Because .......Cathay Pacific collected another award for its cargo services on Saturday, highlighting the good reputation the airline maintains in the industry despite the current difficult times.
CX Cargo won the Best Asia Pacific Carrier award at the "26th Cargo Airline of the Year" organised by Air Cargo News. The event was held at the Royal Lancaster Hotel in London.
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DJ Cathay Pacific:Very Surprised,Concerned Over ACCC Allegations2009/04/30 19:54HONG KONG (Dow Jones)--Cathay Pacific Airways Ltd. (0293.HK) said Thursday it will vigorously defend its actions after Australia's competition watchdog initiated proceedings against the carrier over allegations it participated in international air cargo price fixing. 'Cathay Pacific is very surprised and concerned by being named by the Australian Competition and Consumer Commission as a participant in an alleged global air cargo cartel,' the airline said an e-mailed statement. 'Cathay Pacific will vigorously defend its actions in any proceedings in any jurisdiction, including Australia.' The ACCC's action at Sydney's Federal Court alleges the Hong Kong-based airline entered into over 70 arrangements with other air cargo carriers 'that had the purpose or effect of fixing the price of a fuel surcharge, a security surcharge and rates that were applied to air cargo' between 2000 and 2006, the ACCC said Thursday. The ACCC is seeking declarations, injunctive relief, pecuniary penalties and costs. Cathay Pacific is the eighth airline to be charged by the ACCC. To date, six airlines, including Qantas Airways Ltd. (QAN.AU) and British Airways PLC (BAY.LN), have been ordered to pay penalties totaling A$41 million over the price fixing allegations. -By Jeffrey Ng, Dow Jones Newswires; 852-2802-7002; [email protected] Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?...vP9Ezlsg%3D%3D. You can use this link on the day this article is published and the following day. Copyright (c) 2009 Dow Jones & Company, Inc.
Source: www.finet.hk/mainsite/index.htm
Source: www.finet.hk/mainsite/index.htm
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Jail time
We seem to forget that there is a personal liability for conspiring to breach the Sherman Act. Of course, by making a settlement with the DoJ, it is possible to ensure that the personal jail time is avoided. This almost always means a larger fine in lieu.
Question is: "Why is the company taking money from the employees in order to ensure that none of the responsible management personnel risk jail time for their alleged criminal activities?"
Qantas VP Gets Jail For Cargo Cartel Role
May 8, 2008
By Darren Shannon
A former Qantas executive could be the first person jailed for participating in a cargo price-fixing conspiracy that has already seen giants like British Airways, Japan Airlines and Korean Air pay millions of dollars in fines.
Barry McCaffrey, who had served as Qantas VP of Freight for the Americas, could be incarcerated for eight months for his role in the scandal. Under a plea deal with the U.S. Department of Justice, McCaffrey will admit his participation in meetings with unspecified co-conspirators from January 2000 to at least February 2006 that set prices on airfreight to and from the U.S.
Under the plea deal, which must still be approved by a U.S. court, McCaffrey will also pay a $20,000 fine and cooperate with the DOJ's ongoing investigation. This crime carries a maximum penalty of 10 years and a $1 million fine under the Sherman Act, notes the DOJ in a statement, although the regulator adds that this can be doubled if gains derived from the crime exceed these statutory levels.
Qantas has already paid a $61 million fine for its participation in the cargo cartel.
"Today's guilty plea demonstrates that our ongoing investigation into the air transportation industry will hold individuals, as well as corporations, responsible for engaging in criminal conduct," said DOJ Assistant Attorney General Thomas Barnett in the statement. "The air transportation of products for both businesses and consumers is a critical piece of the global economy."
Although DOJ officials will not comment beyond the release, it appears that other airline executives could also be jailed for their participation in this price-fixing scheme. "The department remains dedicated to aggressively pursuing those who conspire to cheat American businesses and consumers with price-fixing schemes," notes Barnett.
The DOJ's investigation is only part of a worldwide probe into the cartel practice of several airlines that began in February 2006 with surprise raids by the European Commission against a number of carriers in its jurisdiction. As part of a plea deal, Lufthansa has been granted immunity from both DOT and EU prosecution in return for information on other airlines involved in the cartel.
Carriers already fined by the DOJ include British Airways, which had been fixing fuel surcharges, and Korean Air, which was found guilty of manipulating wholesale and retail fares on flights from the U.S. to Korea. Many more carriers throughout Asia, Europe and North America are still under investigation.
Question is: "Why is the company taking money from the employees in order to ensure that none of the responsible management personnel risk jail time for their alleged criminal activities?"
Qantas VP Gets Jail For Cargo Cartel Role
May 8, 2008
By Darren Shannon
A former Qantas executive could be the first person jailed for participating in a cargo price-fixing conspiracy that has already seen giants like British Airways, Japan Airlines and Korean Air pay millions of dollars in fines.Barry McCaffrey, who had served as Qantas VP of Freight for the Americas, could be incarcerated for eight months for his role in the scandal. Under a plea deal with the U.S. Department of Justice, McCaffrey will admit his participation in meetings with unspecified co-conspirators from January 2000 to at least February 2006 that set prices on airfreight to and from the U.S.
Under the plea deal, which must still be approved by a U.S. court, McCaffrey will also pay a $20,000 fine and cooperate with the DOJ's ongoing investigation. This crime carries a maximum penalty of 10 years and a $1 million fine under the Sherman Act, notes the DOJ in a statement, although the regulator adds that this can be doubled if gains derived from the crime exceed these statutory levels.
Qantas has already paid a $61 million fine for its participation in the cargo cartel.
"Today's guilty plea demonstrates that our ongoing investigation into the air transportation industry will hold individuals, as well as corporations, responsible for engaging in criminal conduct," said DOJ Assistant Attorney General Thomas Barnett in the statement. "The air transportation of products for both businesses and consumers is a critical piece of the global economy."
Although DOJ officials will not comment beyond the release, it appears that other airline executives could also be jailed for their participation in this price-fixing scheme. "The department remains dedicated to aggressively pursuing those who conspire to cheat American businesses and consumers with price-fixing schemes," notes Barnett.
The DOJ's investigation is only part of a worldwide probe into the cartel practice of several airlines that began in February 2006 with surprise raids by the European Commission against a number of carriers in its jurisdiction. As part of a plea deal, Lufthansa has been granted immunity from both DOT and EU prosecution in return for information on other airlines involved in the cartel.
Carriers already fined by the DOJ include British Airways, which had been fixing fuel surcharges, and Korean Air, which was found guilty of manipulating wholesale and retail fares on flights from the U.S. to Korea. Many more carriers throughout Asia, Europe and North America are still under investigation.
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Lufthansa has been granted immunity from both DOT and EU prosecution in return for information on other airlines involved in the cartel.
If you have been following this over the last year or so you would know that more than one airline employee has been given jail time so far.
And above statements are correct - the only reason many others have avoided jail is because their companies - including CX - have bailed them out by paying massive fines.
Some companies look after their boys - some don't.
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Cathay accused of cargo cartel
Cathay accused of cargo cartel
Where's TOM?
In a telephone conversation in September 2004 a Cathay manager, Tom Wong, complained to Harold Pang, Qantas's then head of freight sales in Singapore, about the airline offering prices below the Asian carrier's.
"Tom Wong attempted to persuade Harold Pang to increase Qantas's prices for the supply or air freight services from Hong Kong to Australia to Cathay Pacific's prices," the ACCC said. "Harold Pang did not then agree to increase Qantas's prices, but agreed to meet to discuss the matter in the future."
"Tom Wong attempted to persuade Harold Pang to increase Qantas's prices for the supply or air freight services from Hong Kong to Australia to Cathay Pacific's prices," the ACCC said. "Harold Pang did not then agree to increase Qantas's prices, but agreed to meet to discuss the matter in the future."
Mr Pang is one of six former and current Qantas senior managers who were excluded from a plea deal the airline reached with the US Department of Justice in January last year.
