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2 Airlines Fined $300M Each for Price Fixing

British Airways and Korean Air both cooperated with the Justice Department

By Sam Gale Rosen,  Newser Staff

Posted Aug 23, 2007 6:55 PM CDT

(Newser) – A US judge has fined British Airways and Korean Air $300 million apiece for conspiring to fix prices. Both carriers had their fines reduced—British Airways could have faced a fine as high as $900 million—after pleading guilty and cooperating with the Justice Department investigation into a global price-fixing scheme.

"Any anticompetitive behavior is to be condemned at British Airways or at other companies," says BA's CEO.The airlines colluded with each other and with other unnamed companies to fix cargo rates and fuel surcharges, raising prices for shippers and for passengers. Virgin Atlantic has also been pointed to in London, but is not expecting to face a fine, as it reported the misconduct to authorities.

Maria Da Cunha, head of legal and government affairs for British Airways, leaves federal court in Washington, Thursday, Aug. 23, 2007 with attorney Daryl Libow of Sullivan and Cromwell, left. (AP Photo/Susan Walsh)
Maria Da Cunha, head of legal and government affairs for British Airways, leaves federal court in Washington, Thursday, Aug. 23, 2007 with attorney Daryl Libow of Sullivan and Cromwell, left. (AP Photo/Susan...   (Associated Press)
British Airways planes parked at Heathrow Airport in London, in this Aug. 1, 2007 file photo. British Airways PLC was fined $300 million Thursday, Aug. 23, 2007 after pleading guilty to antitrust charges and admitting fixing some prices on international flights. (AP Photo/Kirsty Wigglesworth, file)
British Airways planes parked at Heathrow Airport in London, in this Aug. 1, 2007 file photo. British Airways PLC was fined $300 million Thursday, Aug. 23, 2007 after pleading guilty to antitrust charges...   (Associated Press)
A British airways plane flies over residential rooftops as it comes in to land at Heathrow Airport in London, in this Aug. 1, 2007 file photo. British Airways PLC was fined $300 million Thursday, Aug. 23, 2007 after pleading guilty to antitrust charges and admitting fixing some prices on international...
A British airways plane flies over residential rooftops as it comes in to land at Heathrow Airport in London, in this Aug. 1, 2007 file photo. British Airways PLC was fined $300 million Thursday, Aug....   (Associated Press)
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