Northwest to pay $38 million cargo price-fixing fine

By Annalyn Censky, staff reporter


NEW YORK (CNNMoney.com) -- Northwest Airlines will plead guilty and pay a $38 million fine for conspiring to fix cargo rates, the Justice Department announced Friday.

In a felony charge filed Friday, the Justice Department said Northwest Airlines Cargo earned more than $80 million from air cargo services between the United States and Japan after the company conspired to fix those rates in violation of federal antitrust laws. The alleged price-fixing occurred between July 2004 and February 2006, prior to Northwest's merger with Delta Air Lines (DAL, Fortune 500).

Northwest agreed to pay the fine and cooperate with an ongoing investigation into an industry-wide conspiracy to fix rates.

The company has also fired the person "it believed had primary responsibility for the conduct in question," Delta said in a statement following the plea agreement.

"The agreement doesn't assert any misconduct by any current or former officer or member" of the company's board of directors, Delta's statement said.

Another 15 carriers - including British Airways, Korean Air Lines, Qantas Airways and Cathay Pacific Airways -- have already either pleaded guilty or agreed to plead guilty in the Justice Department's investigation, paying out $1.6 billion in criminal fines, the department said.

Four executives from Qantas, British Airways and SAS Cargo Group have also been sentenced to serve prison time, and charges are pending against a fifth executive, the department said. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 17,164.95 -251.90 -1.45%
Nasdaq 4,635.24 -48.17 -1.03%
S&P 500 1,994.99 -26.26 -1.30%
Treasuries 1.68 -0.08 -4.34%
Data as of 2:18pm ET
Company Price Change % Change
Bank of America Corp... 15.15 -0.28 -1.81%
Apple Inc 117.16 -1.74 -1.46%
Microsoft Corp 40.40 -1.61 -3.83%
AT&T Inc 32.92 -0.04 -0.12%
General Electric Co 23.89 -0.19 -0.79%
Data as of Jan 30

Sections

After a terrible month for stocks, a star analyst says look to biotech, consumer and manufacturing companies. More

Many in the middle class, particularly the single and the elderly, won't see any tax breaks under Obama's MIddle Class Economics plan More

Here's where Seahawks and Patriots fans eat, shop, and play, according to data from ad tech startup PlaceIQ. More

Wix is advertising in the Super Bowl -- but it's just the latest tech unknown to make its debut there. More

401(k) balances reached a record high last year, thanks to a soaring stock market and larger contributions from workers participating in the savings plans, according to Fidelity. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2015 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2015. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2015 and/or its affiliates.