Tokyo-based Japan Airlines joined the growing list of carriers working out a deal with the U.S. Department of Justice, agreeing to pay a $110 million criminal fine and to cooperate with the government's ongoing cargo rate-fixing investigation, the airline and DOJ announced today.

JAL conspired to eliminate competition by fixing the rates for international shipments of cargo to and from the United States and elsewhere from about April 1, 2000, to February 2006. During that time, JAL was the largest carrier of cargo between the United States and Japan and earned almost $2 billion from its cargo flights to and from the United States.

"This price-fixing conspiracy inflicted a heavy toll on American businesses and consumers," said Thomas O. Barnett, assistant attorney general in charge of the department's antitrust division.

"Japan Airlines (has) reached the conclusion that entering into a plea agreement with the DOJ is the best resolution in the circumstances," the airline said in a statement.

On August 23, British Airways pleaded guilty and was sentenced to pay a $300 million criminal fine for conspiring to fix cargo rates for international air shipments, including to and from the United States, and to fix passenger fuel surcharges for long-haul international air transportation, including between the United States and United Kingdom. The same day, Korean Air Lines pleaded guilty and was sentenced to pay a $300 million criminal fine for conspiring to fix cargo rates charged to customers in the United States and elsewhere for international air shipments and to fix wholesale and passenger fares for flights from the United States to Korea.

On January 14, Qantas Airways pleaded guilty and was sentenced to pay a $61 million criminal fine for its role in a conspiracy to fix the rates of shipments of cargo to and from the United States and elsewhere.

Michael Fabey/Traffic World