LAN Cargo penalized for price fixing

LAN Cargo penalized for price fixing The cargo division of Chile’s LAN Airlines said Wednesday it will pay a $88 million fine as part of a plea agreement with the U.S. Justice Department to charges of fixing prices of cargo rates and fuel surcharges.
   Eight other airlines — British Airways, Korean Air, Air France-KLM, Japan Airlines, Qantas, Cathay Pacific, SAS and Martinair/Tampa — have pleaded guilty and paid fines totaling $1.27 billion. At least 30 airlines have been investigated by U.S. and European Union authorities.
   LAN Cargo said the payments, to be made over a five-year period, would not significantly affect the company’s cash position. The Chilean carrier had previously set aside $75 million in reserves to cover any potential penalties.
   In addition, air freight company Aerolinhas Brasileiras S.A., in which LAN Cargo has an ownership stake, also agreed to a $21 million penalty, LAN said.
   The price fixing took place between February 2003 and February 2006.
   The airline said it has taken steps to prevent any further violations of competition laws and implemented a new code of conduct for all employees.