EVA Airways to Pay $13.2M for Price Fixing on Air Cargo
The Justice Department has announced that EVA Airways Corporation has agreed to plead guilty and to pay a $13.2 million criminal fine for its role in a conspiracy to fix prices in the air cargo industry.
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(EVA transports a variety of cargo shipments, including sensitive equipment used to manufacture liquid crystal display (LCD) panels, perishable commodities such as cherries and pet food, and consumer goods, on scheduled flights within Taiwan and internationally, including to and from the U.S.)
EVA Participated in Conspiracy to Fix Cargo Base Rates on Int’l Air Shipments
According to a one-count felony charge, Taiwan-based EVA participated in a conspiracy to fix particular cargo base rates or fees charged to customers for certain international air shipments, including to and from the U.S. from at least as early as January 2003 until at least February 14, 2006. Under the plea agreement, which is subject to court approval, EVA has agreed to cooperate with the Department’s antitrust investigation.
EVA, Co-Conspirators Discussed and Levied Agreed-to Rates
According to the charges, EVA and co-conspirators carried out the conspiracy by agreeing during meetings, conversations and other communications on particular cargo base rates or fees to be charged for certain international air shipments. 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.
Ongoing Investigation Has Charged 22 Airlines & 21 Execs, Imposed $1.8B in Fines
As a result of the Department’s investigation into price fixing in the air transportation industry, including EVA, a total of 22 airlines and 21 executives have been charged. To date, more than $1.8 billion in criminal fines have been imposed and four executives have been sentenced to serve prison time. Charges are pending against the remaining executives.