Airline Executives sentenced 6 to 8 months..
Thread Starter
Join Date: Feb 2008
Location: Wasilla, Alaska
Age: 69
Posts: 38
Likes: 0
Received 0 Likes
on
0 Posts
Airline Executives sentenced 6 to 8 months..
21 airlines fined for fixing passenger, cargo fees - Yahoo! News
"What they came up with, according to federal prosecutors, was a massive price-fixing scheme among airlines that artificially inflated passenger and cargo fuel surcharges between 2000 and 2006 to make up for lost profits.
The airlines' crimes cost U.S. consumers and businesses — mostly international passengers and cargo shippers — hundreds of millions of dollars, prosecutors say.
But the airlines caught by the Justice Department have paid a hefty price in the five years since the government's widespread investigation became public.
To date, 19 executives have been charged with wrongdoing — four have gone to prison — and 21 airlines have coughed up more than $1.7 billion in fines in one of the largest criminal antitrust investigations in U.S. history."
"What they came up with, according to federal prosecutors, was a massive price-fixing scheme among airlines that artificially inflated passenger and cargo fuel surcharges between 2000 and 2006 to make up for lost profits.
The airlines' crimes cost U.S. consumers and businesses — mostly international passengers and cargo shippers — hundreds of millions of dollars, prosecutors say.
But the airlines caught by the Justice Department have paid a hefty price in the five years since the government's widespread investigation became public.
To date, 19 executives have been charged with wrongdoing — four have gone to prison — and 21 airlines have coughed up more than $1.7 billion in fines in one of the largest criminal antitrust investigations in U.S. history."
Lebsock believes the conspiracies were so well hidden that it's possible they would have continued undetected had Lufthansa not come forward. "In the absence of someone coming forward, and ratting it out, it is very, very difficult to establish that there was a (conspiracy)," Lebsock said.
Join Date: Mar 2002
Location: EU
Posts: 644
Likes: 0
Received 0 Likes
on
0 Posts
Why, why did LH go to the US Justice Department when no US carriers had been co-conspirator?? Why not go to the European Commission; Kroes (commissioner for competition) was tough enough.
why did LH go to the US Justice Department
The penalties can be very severe for dodgy dealing & going out of business can be the least of your concerns, depending on which of the various laws you've broken. Try having a google at Foreign & Corrupt Practices......
Join Date: Mar 2002
Location: EU
Posts: 644
Likes: 0
Received 0 Likes
on
0 Posts
Quote:
why did LH go to the US Justice Department
If you do business in the US, have a base or office in the US, a joint venture with US citizens or companies or meet any other of a load of other criteria, then you are covered by US law & liable to prosecution under their legal system.
The penalties can be very severe for dodgy dealing & going out of business can be the least of your concerns, depending on which of the various laws you've broken. Try having a google at Foreign & Corrupt Practices......
why did LH go to the US Justice Department
If you do business in the US, have a base or office in the US, a joint venture with US citizens or companies or meet any other of a load of other criteria, then you are covered by US law & liable to prosecution under their legal system.
The penalties can be very severe for dodgy dealing & going out of business can be the least of your concerns, depending on which of the various laws you've broken. Try having a google at Foreign & Corrupt Practices......
Join Date: Oct 2005
Location: Q5
Posts: 114
Likes: 0
Received 0 Likes
on
0 Posts
yeah sure splash....
If justice doesn't take care the lead particle eventually will. And believe me this world will continue turning without the manager type.... No closing shops btw in this scenario... regards. ^^
One of those executives from an airline that was fined has just started his new post as director General of IATA. In today's world being a manager of a company and literally stealing of the general public earns you a promotion.
Join Date: Oct 2009
Location: The Land of Milk and Honey
Posts: 210
Likes: 0
Received 0 Likes
on
0 Posts
i feel, then, that if this sort of thing can go undetected for years, that all airline managers should be imprisoned as a precaution, and denied any contact with the outside world if their employees (sorry, make that just pilots) so decide .
