EVA Airways fined $13.2 million in price-fixing case
EVA Airways has pleaded guilty to engaging in price-fixing behavior and has agreed to pay a $13.2 million fine, according to a U.S. Department of Justice (DOJ) news release. EVA will now play an active role in the ongoing investigation. The plea agreement is subject to court approval.
The one-count felony charge against EVA Airways Corp. alleged that the airline engaged in price-fixing behavior from January 2003 to February 2006. According to the DOJ, "as part of the conspiracy, the department said that EVA and co-conspirators levied cargo rates in accordance with the agreements reached, and monitored and enforced adherence to the agreed-upon cargo rates."
Before arranging a plea deal, EVA Airways was facing fine of up to $100 million. The majority of the airlines charged for price-fixing have pleaded guilty and have agreed to pay fines; among them, Air France-KLM and Cargolux paid the largest fines at $350 million and $119 million, respectively.
EVA is the first airline this year to plead guilty to price-fixing allegations. In April, two former Air France executives were charged for engaging in anti-competitive behavior. Of the 21 executives charged in the investigation, only four people have been sentenced to prison time.